How to Finance your Package Home Project

If you’ve ever watched an episode of Grand Designs, you could be forgiven for thinking that pretty much every self-build comes with a price tag to baulk at and budgets that grow exponentially as work progresses.

In fact, the vast majority of bespoke homes completed in the UK each year represent not only high-quality, individual design, but also great value for money. It’s just that these stories about people bringing their schemes in on time and on budget don’t make great TV.

The secret to getting things right is to approach your build with your budget in mind at all times. Create a cost plan and regularly cross-check against it (both in the design and construction stages) to ensure you’re getting the house you want at a price you can afford.

Easy to say, but not quite so easy to do; and that’s why working with an experienced partner who understands your goals on every level can be such a boon.

This could be your architect, a professional project manager, main contractor or package house supplier. The beauty of the latter route is that you’ll usually get a fixed fee for a sizeable chunk of your project – so you can be as near to certain as it’s possible to be that you’ll pay the price that’s been quoted.

Making a budget

Before you can move ahead with a project – and ideally before you’ve purchased the land – you need to figure out just how much you can afford to spend. This is fundamentally an exercise in totting up your savings, whatever equity you have in any existing property and what level of funding you could attain via a self-build mortgage (if required).

The sum you come up with will need to pay for your entire project – including the plot, site prep and service costs, construction, professional fees etc. Land prices vary hugely, but tend to work out at anything between 30% and 50% of the total spend.

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