We are selling our family home which will leave me £160,000 in pocket. This is not enough to buy a new home and unfortunately we will not be eligible for a mortgage for three years as my husband has recently become self employed and lenders require three years of accounts.

I could rent for three years but will ending up using part of this money as I will be going on unpaid maternity leave very soon. After watching 100k house, I am wondering if there is anything I can do with this money to be able to have our own 3 bedroom home. I don’t mind whether its a flat or house as long as we have somewhere comfortable to live. We are hoping for the Boroughs of Brent, Camden or possibly Barnet in London but would prefer to only use 100k.

Any advice would be appreciated as I don’t have a clue about these things. My husband works in construction if that helps but I’d prefer not to have to do a any DIY with a small baby around. Thanks

  • Rebecca Clutton

    Hi Natalie. I would think there is every chance you could build a new home within your £100k budget. However, I would imagine that finding a suitable plot in the London area would be very difficult. I live just north of the Midlands and finding a plot for £60k in this area would be tricky so I think that could be your stumbling block. Keep your eyes peeled and try to see beyond what may put a lot of people off. You can be very imaginative with a design for a small plot but maybe your first port of call should be the local authorities to see if they have identified any suitable plots for development. Good luck

  • Lindsey Davis

    Hi Natalie,

    As Rebecca says your biggest hurdle will be finding the land, but it isn’t impossible without a bit of hard work.

    We have a few articles which might help. Piers Taylor wrote a piece on plot hunting on a budget which has some great tips. But still, in London 60k will mean slim pickings. http://www.homebuilding.co.uk/advice/beginners/plots/plot-hunting-on-budget

    With construction experience, your husband is in a great position to build on a budget. Many have done it on a DIY basis with limited skills, so you could be able to eliminate labour costs entirely. Take a look at these homes build for less than 100k for some tips http://www.homebuilding.co.uk/global-free-tags/under-£100k.

    Finally, if you are stumped by the land issue, think about custom build or cohousing. There are quite a few cohousing projects in London so you might find one near your desired areas. This is basically where a group of people build their own homes together, perhaps as flats or a collection of townhouses. You seem prepared to live in close quarters, so it is basically a matter of whether you could see yourselves working with others on your self build. People are getting well designed homes for very affordable prices under these schemes.

    Again we have a whole section on the site for this: http://www.homebuilding.co.uk/custom-build but you could also try the Cohousing Network for advice.

    I hope this gives you a bit of food for thought.


  • Adam

    Perfectly possible for a person with construction experience to build a house for 100k. Don’t expect too many "wow" features for that money though. It will be boxy and plain if you want to keep the build costs down. Long straight walls can be built quickly and cheaply. Corners and details take time and add cost.

    In London you really will be up against it to find a plot of land. The reality is that there are a lot of others trying to do the same thing with far greater budgets. That’s not to say don’t try but I would suggest exploring alternative areas you would consider living in if you want to make this dream a reality. I had to do that and we found the days out quite good fun and ended up finding what we wanted in a place we never expected.

    You have nothing to lose.

    Good luck!

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