Hertsmere Borough Council

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Section 2 - Financial Considerations

Having obtained provisional estimates and quotations for the plans and building work contact the Building Control Section to find out the total Building Regulation charges (for checking the plans and inspecting the work) and likely Planning fees.

These fees in addition to the above quotations will form the amount you may wish to borrow.

If you have a mortgage contact the Building Society or bank who hold your mortgage and arrange to meet with their Loans Adviser for a Home Improvement loan, or if no mortgage is held with them, a Secured loan.

Find out from the Loan Adviser:-

i) What administrative costs will they charge?

ii) Will they require their surveyor to inspect the work before releasing funds and will they charge for the surveyor’s visits?

iii) Will they release funds at various stages - if so they may require proof that the stage has been completed.

Note:
You should avoid agreeing to the loan being released when the work is completed as you will have to find the funds yourself to pay the builder the stage payments (i.e. when the foundations have been laid, when the roof is on, when the walls and ceilings have been plastered, and, on completion of the works). If they release the funds in advance don’t pay it all over to your builder, agree in advance with the builder on payment in stages.

iv) Will they consider revised estimates for unforeseen occurrences? i.e. where foundations have to be taken deeper due to nearby drains, bad ground, because of tree roots, or because existing walls require underpinning.

Contact your Building Control office to ascertain which, if any, of these pitfalls may affect your project.

v) What documentary evidence will they require? i.e. an invoice or bill from the builder, an invoice from the Council (for the inspection charge), and receipts for all the payments made in advance of the loan i.e. for the preparation of the plans, for the Building Regulation plan approval, or for Planning Permission.

vi) Will you need to increase your building insurance payments?

vii) What will be your new monthly repayment?

viii) When will the repayments commence?

ix) Will they pay the remainder of the loan on obtaining a final certificate from Building Control?

Agree with the builder in advance on stage payments and a final retention whereby you keep an agreed amount for at least 6 months.

You are advised not to commence work until you have obtained a Building Regulation Approval, and ensure the builder has a copy of the Approval, the Approved plans and confirmation that the original agreed estimate remains unaltered.

A rough estimate for a single storey extension of floor area of 20m² with additional alterations up to £1000 is:

Planning