Any underwriters out there? New build flat question

pdl2009

Hi,
I've found some lenders who will lend up to 85 LTV on a new build flat, but I am sure there are certain criteria that have to be met. Does anyone know what criteria have to be met for underwriters to consider lending the maximum LTV for new build flats? e.g. number of floors, units, percent sold, property location, etc
Thank you.

Dan_1976

If you can get 85% it would normally have to be leasehold (40-50 years left at end of mortgage term, have NHBC cert or something like it that the lender would be happy with 4 floors, maybe 5.

The fact it is a new build flat will be an issue let alone the rest.

herbiesjp

Each lender will have different criteria, so you would have to approach each one to find out how would they view the property you are looking to purchase

lembert

This will depend if you are planning on living in the property or renting it out.

On the whole, they will lend on new builds as long as they are leasehold (with a long lease) and standard construction.

Generally this is acceptable and you are responsible for the contents insurance only (as you don't own the building).

All new builds must have NHBC or architects/zurich certificate.

If it is buy to let, they will look at the level of income in relation to the mortgage payment.

Mortgage lenders don't usually like hi-rise flats

Other than this, generally, you should be fine, Hope this helps

pdl2009

I'm not sure if my last post made it...just wanted to respond that it is not buy to let and ask 2 more questions:

How do you count floors? e.g. is G, 1, 2, 3, 4 considered 4 or 5 floors?

How do you evaluate developments with multiple apartment blocks? I'm looking at an occupied, 95 percent sold block in a 4 block development. 2 blocks are sold and occupied. The other two aren't complete. 30 units in each block.

I find lenders aren't forthcoming about their criteria...so either they don't have criteria and it is decided on a case by case basis, or they are being a bit dodgy with consumers and taking their up front money when they could have let them know in advance the property wouldn't qualify. Consumers should be able to make an informed decision.

Anyway, thanks for the help.

ILW

pdl2009 wrote: »

I find lenders aren't forthcoming about their criteria...so either they don't have criteria and it is decided on a case by case basis, or they are being a bit dodgy with consumers and taking their up front money when they could have let them know in advance the property wouldn't qualify. Consumers should be able to make an informed decision.

Anyway, thanks for the help.

what up front money is this?

Conrad

Lender exposure is key.
If HBOS group (now Lloyds of course) already have high exposure on a given development, then further lending could be declined.

As Herb says, there is an awful lot of differing criteria, and it won't really help you if I were to list it all here. For a start, the valuers comments are key anyway, so we could waflle on forever, only for the valuer to kill the deal.
They will be looking at the repo rate, lenders current exposure, competition from forthcomming developments besides much else.

The lenders who might be able to consider, are pretty much the big names only at 85%.