buying residential land and building prefab permanent home

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diy.sons
Posts: 6
Joined: 22 Jun 2021 18:09

buying residential land and building prefab permanent home

Post by diy.sons »

hi,
I'm new to the forum and couldn't find any info about building a prefabricated house on residential land.
My assumptions are that the process will be standard as building a concrete or any other type of house, but as prefab homes are mobile homes, I am wondering if some steps during the process (like building permit and so on) can be skipped?
Also as it's residential land are they any requirements for what can and what can't be built?
Connecting to the electricity and water without a building permit?
We will be able to purchase the land using savings but will need a loan or mortgage for the rest. How doable is this?
Planning a small 2-bed bungalow of around 80-90sq Mtrs.
Spoke to a guy who has built prefab and paid 170k for 150sq mtrs.
I'm very capable of doing much of the finishing work myself(including flooring, plastering, basic electricity, and plumbing). Installing a shower, toilet, or any kitchen drawers, not an issue, so planning to negotiate with the construction company the best possible price without the finishing jobs.
What time frame I should expect?
Any advice, best of someone who did this will be highly appreciated.
Nigel Howarth
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Re: buying residential land and building prefab permanent home

Post by Nigel Howarth »

Hi diy.sons and welcome to the forum

Yes - you will need planning permission and building permits.

As for the size, etc of the property you can build, this will be dictated by the land zoning and coverage, density, height. All this information you can get online from the Land Registry database. I wrote an article a few years ago that will help you to find the information - Online property valuations revisited.

You'll need a building permit for electricity and the EAC will carry out a safety check before connecting you.

You can do most of the work you mentioned, but do not do any of the electrical work.

As for getting a loan, you'll need to speak with your bank - I can't answer on their behalf.

As for timescale, agree a it with the building contractor and get it written into your contract.

I suggest you buy the fixtures and fittings yourself as you'll be able to get a better quality at a better price. Agree the costs of fitting them with the contractor.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
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diy.sons
Posts: 6
Joined: 22 Jun 2021 18:09

Re: buying residential land and building prefab permanent home

Post by diy.sons »

hi Nigel,
thank you for your quick reply.
I've found this forum very helpful.
do you know if banks are giving loans against the value of the land you own? I mean, if you are buying a ready-built home the bank will take it under consideration apart from your initial deposit and incomes, but what about if it's just land?
any suggestions on companies that are building relatively cheap and are reliable?
Thanks again for the help.
Regards
Dan
diy.sons
Posts: 6
Joined: 22 Jun 2021 18:09

Re: buying residential land and building prefab permanent home

Post by diy.sons »

what are the sizes of the residential plots? are they any limitations or absolute minimum?
I'm looking at a residential plot of 400qs mtrs. with taking into consideration some part of the plot has to be available for future roads and pavements.
is the building factor considered on the 400 or the meters left after the reduction? I'm keen to take a solicitor and surveyor to do research before I made my offer to the landowner. Any recomendations or link, please?
Nigel Howarth
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Re: buying residential land and building prefab permanent home

Post by Nigel Howarth »

Residential plots vary in size and as far as I'm aware there is no minimum size.

You should look out for a 'building plot' (in Greek οικόπεδο [eekopedoe]), which will have a pavement, road, electricity and water to the plot. If you just buy residential land you will probably end up losing some of it for road(s), pavement(s) and possibly a green area and pay for the utilities to be brought to the plot.

We drove around and looking at For Sale signs. But then we found what I thought was a builder and asked him if he knew where I could find plots for sale. He drove us round several places and spoke with the sellers and would come back and say 'they want too much'.

But eventually he found us a plot - and it turned out he wasn't a builder he was doing work on his house! He was very helpful.

You could ask at the local Community Office if they know of any building plots for sale. (I found one for a friend using that method.)

As for lawyers, I suggest you use one in your area that's on the list published by the UK Foreign Development and Commonwealth Office.

Many lawyers know surveyors who can check the land to ensure all is OK.

I assume you're resident in Cyprus? If not you may have difficulties getting a loan and you may have to resort to re-mortgaging your present home to raise the capital.

I can't recommend any construction companies, but a Google search should find some.

Cheers,
Nigel Howarth
Independent information & advice for Cyprus property buyers
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diy.sons
Posts: 6
Joined: 22 Jun 2021 18:09

Re: buying residential land and building prefab permanent home

Post by diy.sons »

is there a difference between building plots and residential plots?
Nigel Howarth
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Re: buying residential land and building prefab permanent home

Post by Nigel Howarth »

A Building Plot (in Greek οικόπεδο [eekopedoe]), will have a pavement, road, electricity and water to the plot.

You'll have to visually inspect 'residential plots' - they may be residential land or residential land that's been subdivided into plots or building plots.

Post the URL where you've seen these and their photographs

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
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diy.sons
Posts: 6
Joined: 22 Jun 2021 18:09

Re: buying residential land and building prefab permanent home

Post by diy.sons »

we've found a sign for sale on the road. I've checked the map from land registry and it appears into the village boundries, it is on the main road, also has electricity and water passing by. According to the owner it's residential. Currently there is no pavement, and the owner told us some part of the land might be taken by the municipality if they are to build one. Will take the copy of the deeds soon.
diy.sons
Posts: 6
Joined: 22 Jun 2021 18:09

Re: buying residential land and building prefab permanent home

Post by diy.sons »

I've learned that the bank is taking under consideration only part of the land valuation for calculating the amount they can lend....?
Second I've been advised that if we take a mortgage we save some tax money or VAT...?
Are those statements true and to what extent?
The last thing is, as if we take a mortgage to build, the bank will calculate at the beginning that we will still pay rent(during the build) and also will start repaying the loan at the same time... that pushes me to buy the land with own savings, Apply for a town planning permit, Apply for building permit, Cover permit if needed and only after all those are done to apply for a mortgage.... am I on the right idea how the things are happening, or I am missing something?
Nigel Howarth
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Re: buying residential land and building prefab permanent home

Post by Nigel Howarth »

Your lawyer needs to check the Title to see (a) if there any charges lodged against it and (b) what you can build on it. He/she should also be able to find out how much of it you may have to give up to the municipality.

You need to find the costs involved in supplying utilities to the site and check that you can get access from the road.

As for the VAT, I understand that initially you'll have to pay the full rate of 19% but you'll be able to claim 14% back as the land will be used for your primary residence.

(I've sent you details of my architect.)

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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