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How it works for homeowner applicants
Site plots are available to anyone to apply. Prospective homeowners can apply for up to five sites and their application will be reviewed and approved by the plot provider, either the local authority or housing association, who will also set the design criteria.
After confirming the final design, costs and chosen builder with Self Build Wales, the applicant puts down a 25% deposit on the cost of the plot. Qualifying applicants will receive a self-build development loan to cover the balance of the plot (the remaining 75%), and the full cost of building the property.
Applicants are responsible for overseeing the self-build project and the loan becomes repayable when the project is completed. Typically, the loan would be repaid via a mortgage and the application process requires that applicants receive a mortgage agreement in principle before work starts.
The obvious benefit of this approach to the homeowner is that it makes it possible to start the self-build project while living in an existing home, as well as removing initial uncertainties around finance.
To qualify for the loan, applicants are not allowed to sell or rent the home for a minimum of five years from the completion date, and the completed project must be the applicant’s only home. Applicants do not have to live in Wales currently but the plot will be in the country at one of the available sites.
Applicants can search for available plots on the Self Build Wales website.
How the scheme works for builders and contractors
The major stipulation for builders and contractors is that they must be registered with TrustMark. As the build is funded, the scheme will pay the builder from the fund in stages, likely to coincide with preliminary costs and foundations, wall plate level, wind and watertight stage, first fix and plastering and completion.
All construction must meet current Building Regulations and a further requirement of the scheme is that the project must be covered by a structural warranty, such as LABC Warranty’s dedicated self-build product.
More information for participating building and contractors can be found here.
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