Important Financial Considerations When Building On A 'Knock Down' Site

Construction & Contractors Blog

'Knock down' is a recently-coined term that refers to self-build plots where a new property will be built on the site of an existing one.  Although it often makes sense to replace an old, tumble-down house with a brand new eco-home, there are some potentially-overlooked financial implications that you should take into consideration before you instruct your contractors to start the demolition work. Read on for some helpful information.

Financial implications

When considering building on a 'knock down' plot, there are many financial implications to be considered:

1. You will have to pay a professional demolition contractor to carry out the work, which will add to the cost of the build.  However, your contractor should be able to offset salvage items of value against their bill for site clearance and demolition work.  
2. You should be able to re-use any existing mains service connections such as sewage, power, and water, and this could save you quite a lot of money in virgin connection fees.  
3. You can save money on haulage and landfill costs if it's possible to reuse waste that is generated by the demolition process; for example, you could recycle hardcore produced as a result of ripping up old foundations as hardcore for your new driveway.  
4. A potentially expensive complication is the disposal of asbestos that was used for pipe cladding, roofing etc in the existing building.  Asbestos must be disposed of by a specialist contractor in line with strict rules, and this will attract extra cost.  
5. If your plot is in a rural area, you will probably need to commission an environmental survey that will be carried out by an ecological consultant.  The purpose of this survey is to identify any endangered species of flora and fauna that might be affected by your proposed demolition and building work.  There may also be costs incurred if it's necessary to relocate resident creatures or plants.  
6. You may need to apply for planning permission if the 'knock down' is a listed building or occupies a site of special interest.  This process can be lengthy and also costly.  
7. If your demolition work and subsequent re-building will have an impact on a neighbouring property, like the removal of a party wall, you will need to have a legal agreement drawn up, incurring extra costs.

In conclusion

When considering building your dream home on a 'knock down' site, there are number of financial implications you'll need to be aware of, before you being your project.  For more information and advice, have a chat with your construction and demolition contractor.

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8 August 2016