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I built my three-bed dream home for £180k – how to do up a house on a budget
One lucky homeowner was able to build her own dream home for less than the average house price
SAM Jackman would never have been able to afford her dream home had she not inherited a derelict bungalow from her dad.
Back in 2014, the 41-year-old was extremely lucky to have the run-down property in Calstock, Cornwall, where she grew up, gifted to her by her parents.
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When Sam was given the plot of land by her father as an early inheritance, it had a run-down prefab bungalow on it, along with a dilapidated workshop space.
The former teacher and art museum worker, who now owns her own business, We Wear Boost, told The Sun: “My father was not keen on doing up a property himself, given the effort required, so wanted to pass it on.
"As I’m an only child, he gave me the opportunity to do it instead.
“I was very lucky as I didn't have to purchase the plot, which saved me a major expense, meaning all money from selling my other house could be channelled into the self-build."
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Sam's original plan had been to completely gut the bungalow and renovate it.
But, once she discovered there were asbestos issues and after speaking to some experts, she realised it would cost roughly the same to tear it down and build a new home from scratch.
It took Sam around 12 months to build her own home on a budget after planning permission was granted, costing around £180,000 in total.
She has now lived there for just under a decade along with her partner, David, and their son, Charlie, 14 – and she absolutely loves it.
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Financing the project
But financing the project was no mean feat.
“Initially, I thought I’d just get a self-build mortgage,” she said. “But trying to get this over the line turned out to be really difficult.”
Sam and her partner also considered equity release, where you take some cash out of your home, to stay living in their previous house with their son near Callington, just a few miles away from Calstock.
“But I soon realised that I’d need to sell our home to help fund the build, because the mortgage kept falling through,” Sam said.
“I put it on the market expecting it to take a few months to sell, but we received a full asking price offer within two days – and were asked to move out within a week.”
As Sam needed the money from the house sale, she agreed.
“But I’d effectively made us homeless,” she said. “Then suddenly, the stars aligned, and we found out my aunt had a rental property nearby that we could move into temporarily."
This allowed Sam to sell her home and get her hands on around £30,000 in equity. She then took out a bridging loan - a type of short-term loan to finance a project - for around £100,000.
“The rate on this was quite expensive, but it was only temporary, so it was affordable in the short term," she said.
“Fortunately, as the self-build took shape, getting finance became easier.
"Once the property had bathrooms and a kitchen it became possible to get a ‘normal’ residential mortgage with a much more competitive rate.”
Breaking down the costs
One of the biggest expenses for Sam’s project was "site clearance", which is removing everything that was there before.
“I reckon I paid out about £45,000 on the preparatory work,” she said.
“This included things such as asbestos surveys, which came in at around £6,000, and landscaping, which cost around £20,000."
Specialists had to be brought in for jobs such as the electrics and plumbing, too.
How Sam saved money on her build
But, Sam was very efficient when it came to buying fixtures and fittings, which massively brought down her costs.
And a key part of Sam’s success in keeping costs down throughout the build was budgeting very carefully.
She said: “I was very honest with myself about the amount I had to spend in total, and therefore very disciplined about only choosing fixtures and fittings that were affordable.
"I decided not to go for high-end, and instead, opted for things like a ‘ready-made’ Howdens kitchen and Karndean vinyl flooring, which is easy to install and really hard-wearing too.”
She also focused on making it energy-efficient from the get-go to save money on her bills once she started living there.
“We opted for an air source heat pump,” she explained.
“As the property didn't have gas, I thought the pump was worth investing in.
"We got solar panels installed, too, which have helped us save on our electricity bills.”
Another of Sam’s clever money-saving ideas was to host ‘painting parties,’ where friends and neighbours came to help with the decorating.
“When you’ve got to paint a large three-bed property entirely from scratch, you realise it’s going to take ages,” she said. “But with everyone chipping in, the job got done far more quickly and cheaply.”
She also opted to just have three larger bedrooms rather than more smaller bedrooms, which was actually more cost-efficient.
Instead, she spent that money on things she really wanted.
“The house also has a beautiful fireplace, underfloor heating and huge windows to enjoy the far-reaching views," she explained.
Having land around the property has meant Sam has had room to expand over time, too.
How to keep costs down on a self-build
Properties often cost a lot less to build than you would pay to buy them.
This is why when you take out buildings insurance, the rebuild cost is often far lower than you paid for the property.
So, it is possible to build a dream home for far less this way - if you're able to get your hands on a plot of land or a house to knock down.
Marc von Grundherr, director of property firm Denham and Reeves, said it's important to prioritise spending money on more difficult tasks, while tackling easier tasks yourself to cut costs.
"Painting, clearing, even basic landscaping of the garden are all achievable tasks that can be accomplished with time and effort," he said.
"The more important aspects of a home, such as gas, electric and plumbing are always best left to a professional."
Meanwhile, Tarquin Purdue, CEO of HaMuch.com, said materials can make a huge difference to how much a build costs.
“Materials make a huge difference to cost, especially during a property renovation, and the professionals will always ensure they use the right materials based on the budget they are given - so why wouldn’t you do the same?
"Researching local suppliers, compare prices and look for deals, discounts and sales. It all adds up and it will give you a comprehensive view of what you can get from where and for the lowest price.
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"If you are tight for cash, consider the next best alternative. Laminate flooring over hardwood, tiles flooring over marble, granite kitchen tops instead of quartz, composite decking over real wood or matte paint over expensive wallpaper."
Inside the 'saddest' Grand Designs house
Savills's listing reads: "The property represents a once-in-a-lifetime opportunity to take on and finish the specification and fit out of one of the UK’s most spectacularly situated coastal homes.
"The bespoke design has been brought to life through impressive engineering, with the building being anchored to the bedrock, blending whitewashed elevations with steel and glass, culminating with a lighthouse feature at one end giving almost 360-degree views of the coastline.
"The position combines privacy with a diverse range of breath-taking views, all set in around 3 acres, which includes a large area of foreshore, a private tidal beach area and coves."
The property is set in three acres of land and is equipped with an infinity pool and a hot tub as well as a spacious driveway.
Nic Chbat, director of Match Property estate agents in North Devon, who previously assisted with finding a buyer last year said at the time the sale stalled after the timeframe for the sale "expired".
He added the previous buyer was “still wanting to buy the property,” and the sale was still expected to proceed.
The new listing though would suggest the purchase was never made with the sale now being handled by London-based estate agents Savills.
A spokeswoman for both Savills and the receivers Bellevue Mortlakes said: "The sale represents a once-in-a-lifetime opportunity to purchase one of the UK’s most spectacularly situated coastal homes and for the buyer to put the finishing touches to the property’s interior to their own specification.
“The current sale price (offers in excess of £5.25m) represents fair value noting the prevailing economic and heterogeneous nature of this opportunity.
"The property has panoramic sea views and is set in grounds of over three acres, including foreshore and a tidal beach, with accommodation extending to over 6,260 sq ft.
“The detached guest lodge/holiday let accommodation extends to about 1,270 sq ft and is included in the sale price.
“Subject to registration with the agents, the receiver has provided an extensive suite of information and supporting documentation relating to the building's history, construction and title, which are available via an online data room."
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