Buying an Unfinished Brand New Build without a NHBC/Zurich cert

Layla_CK

Can I ask why?

SouthCoast

Layla_CK wrote: »

Can I ask why?

Risk v Reward in a declining market.

A £3 search at the Land Registry could be interesting.

Layla_CK

SouthCoast wrote: »

Risk v Reward in a declining market.

Yes, that is very true - we are hoping to live there for a long time though, it can't hurt to investigate this further. It's horrible always thinking what if...we're not going to put any money down, just try and gain some more info

Gangstabird

Layla_CK wrote: »

Can I ask why?

Because you are looking for a bargain and I don't blame you. The paperwork on getting this house finished to NHBC crap standards will make you self harm at some point.

There will be other, better, more established houses along and YOU will be able to afford them. :beer:

Richard_Webster

1. Get copy of Land Registry entries to see who the present owner is- then you can see if there is a mortgage on it - which would indicate the mortgage company had repossessed - or more likely it is in the name of a builder who has gone bankrupt, or if a company , is in liquidation. You can search the individual insolvency register to find out if an individual is bankrupt and a "webcheck" at Companies House will tell you if a company is in liquidation.

2. Ask the Council's Building Control if they have signed off the property as completed. If not, they may tell you what needs doing.

3. Even if there is a Building Control completion certificate available in order for the house to be mortgageable for the next 10 years you need NHBC or Zurich certificate, of failing them, a certificate from an architect of building surveyor (or certain other professionals) confirming they have supervised the construction and it has all be done properly. If nothing can be provided in this area you may well find that the house cannot be sold to anyone other than a cash buyer for the next 10 years.

Layla_CK

Hi Richard - a really great informative post - thank you

Husband has spoken with building/planning at the council and here's what he has heard back:

There are no records of any building regulations submitted, apart from the original planning request in 2002, there are no further applications.

The council will have to come out and take various samples of the foundation, tests on the building etc, but this can only been done once detailed drawings had been submitted by an architect.

Until then, the council can put a black mark against the property.

The council have no idea that the build is there and they said that if there is a build, it’s there contrary to building regulations. They said that they can tear it down if the property was build within the last 12 months, if more than 12 months then they wouldn’t.

Estate agent still being as unhelpful as ever saying they’ll try but can’t do much hence the price.

We conducted a land registry search and it came back the Northern Rock provided a £140,000 mortgage in 2005 to Mr and Mrs X.........

ILW

The property is very cheap for a reason.
There is a whole load of risk and expense involved.
I would suggest that unless you have a very large contingency fund and some good solid building trade contacts, leave to someone who does.
Altenatively if you are the type that likes a gamble- go for it!

bo_drinker

Can of worms...... red tape etc etc etc. Walk away........ infact no RUN.

bizywizy

sounds like a messy complicated risk tbh.

How do you know its built ok. Lots of normal new builds contain nightmares so if this has been done shoddily then you could head for disaster anyway.

good luck

Layla_CK

Yes, you're all right - seems such a shame, but reckon it may be too much of a gamble/requires much more knowledge and experience than we have

Can't believe someone would buy land, get a mortgage and build a property incorrectly/no paper trail - no wonder it was repossessed, looks badly managed from the outset! I mean who if you saw the land/knew the area you wouldn't believe that someone would be bale to raise a mortgage for £140,000 on it even before they started building :O

Such a shame as it 'looks' like a lovely First time house for us