Definition of a New Build

Irvhud
Irvhud Posts: 12 Forumite
in Mortgages & endowments
Stupid question No. 34953.

When does a New Build House / Flat stop being a new build?

Is it when it is sold to the 2nd owner and therefore has previously been lived in?

Comments

  • Senior_Paper_Monitor
    Senior_Paper_Monitor Posts: 2,918 Forumite
    First Anniversary Combo Breaker
    Near useless answer No. 78654

    It varies by lender
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    What is the actual point of yr question....as NB has several different meanings
  • Cannon_Fodder
    Cannon_Fodder Posts: 3,980 Forumite
    Mostly.

    Although there are some conversions, where the work is so fundamental it is considered to have turned an otherwise old structure into a "new build".

    Might depend on the context.
  • happybroker
    happybroker Posts: 1,301 Forumite
    it varies wildly aswell.....also Abbey will apply different affordability calculations on new build at 80% ltv for some reason.
    Happily an ex mortgage broker!
  • Irvhud
    Irvhud Posts: 12 Forumite
    The context is,

    If I wanted to buy a brand spanking new house that has never been lived in on a developement my understanding is that lenders would be asking for a 75% LTV as they are more risky in terms of value.

    If I wanted to buy a property on the same development but one that has been lived in and on the market for a value less than that of the purchase price for a brand new one would the lenders be 'happy' with a 90% LTV??

    Hope this makes sense
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Depends on how old it was...as it would probably still be classed as a NB even altho 2nd hand
  • luckyfool
    luckyfool Posts: 1,683 Forumite
    Varies by lender. Some its 2nd hand as soon as it has been previously occupied, with most it needs to be at least 2 yrs old, with some its 4 yrs or more.
  • mark.burns
    mark.burns Posts: 1 Newbie
    I spoke with Nationwide last night asking this, as Im looking at a new house and need a small deposit (as not much equity in my current house). Nationwide said they can do 15% deposits on New Build, which they classed as not having been lived in for 2 years. As the house Im looking at was built 3 years or so ago, they said they dont class it as New Build any more and can get any of their mortgages.

    They stressed that this is their definition of New Build (for a house anyway - flats could be different again), but does show you really need to phone them direct.
  • JA1000
    JA1000 Posts: 620 Forumite
    Nationwide told me 6 months and let me apply, others are 12 months.
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