Top 5 Hidden Costs to consider when starting a new-build project
At ICI Architecture Studio the most common question that we are asked is what are the costs associated with commencing a new build super-home!
These 5 costs are often hidden costs that people are not usually aware of that need to be factored into budgets to avoid any surprises that we hope you will find useful!
CIL's Tax- Community Infrastructure Levey. This tax varies dependent on the size of the development and the location in which the project is being constructed. There is certain exemptions to CILs Tax but it is up to the land / property owner to provide evidence. ICI Architecture Studio will be publishing a separate article which goes into CILS tax in more detail.
Hidden Costs - When looking to start a new build project its important to make allowances for some potential hidden costs including legal fees, topographical survey and land investigation fees, NHBC warranties and Insurance etc.
Reclaiming VAT- Some exclusions do apply as to what VAT can be reclaimed. ICI Architecture Studio would recommend appointing an accountant or contacting HMRC for further details. An accountant will be able to support you in assisting to reclaim some of the funds back (subject to eligibility) from HMRC.
Planning Conditions - When planning approval is granted for a new build property it is very common for additional conditions to be imposed which often have to be addressed before starting on site (known as pre commencement conditions). Some of these conditions may ask for additional reports. TIP: To save some money it is always best to submit an application to discharge all of the conditions at the same time. This saves the cost of paying for multiple applications.
Checking Services- Our final top hidden cost when considering constructing a new build property and finding the perfect location is to check for the existing services within the site. To check mobile phone signal, check if Broadband providers are set up in the area that wish to build as well as power and drainage! Connecting plots to essential services could be both problematic and expensive!
At ICI Architecture Studio we are here to help you every strep of the way so if you have any questions about your project and would like to find out more information on how we can assist you please get in touch!
Call 01260 602 005 or visit our website at www.ici-architecture.co.uk where we offer a FREE initial consultation with no obligation to use any of our services.
We are more than happy to visit the site or via Zoom call as well!
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