Building a home in your garden: what you need to know

Finding, financing and getting planning permission on a plot of land can be a long and daunting process for aspiring self-builders, but if you’ve got a generously-sized garden, you could have the perfect self build land to build a house on.

Whether you’re looking to house guests or a relative, rent it out, or move into it yourself, it can also be a smart financial investment.

Harry Thorpe, of Footprint Architects, explains some of the most important factors you’ll need to know before tackling a self-build in your home’s garden.

The perfect site

“The ideal building site has frontage on an existing road, and as little as 30ft to the side of your house can provide enough land for a new property,” explains Harry.

You need to question whether your new build will have a detrimental effect on your existing property’s value – aim for the overall plot to be at least 3 times the building’s footprint as a rule of thumb.

Existing covenants

Check with Land Registry to find out f there are any legal restrictions that prevent your land being built on or a right of way – if there is,  they could potentially be removed with legal assistance. If you don’t adhere to any existing covenants you could find yourself ordered to demolish your grand design.

Funding

If you own the land you’re planning to build on, you could get an accelerator mortgage. This mortgage will give you a percentage of the land value which could pay for a large proportion of the build costs. Find out more about self-build mortgage options.

Capital Gains Tax considerations

Capital Gains Tax can be a hefty cost of up to 28% of any gains made when selling a property, but it may be possible to sidestep this: “If you move into your new build and sell your old house, or if you sell off your garden with planning permission for someone else to undertake the project – as long as the land size is under 0.6 hectares,” explains Harry.