Valuations: Help needed

JJmcClure

Morning all

Not a good morning for me so far - and need advice.

Buying a flat. Two-bedrooms, old Victorian house converted into four flats.

I ask the Estate Agents several times, is it classed as a new build. They tell me 'no.'

I go to Clynesdale Bank for a 90% mortgage. They accept me.

They do the valuation and come back claiming it's a new build and want 30% from me which I naturally don't have.

So my question is, would all lenders call it a new build? Would all their valuations be the same, or could another lender class it differently.

The Estate Agent is trying to find out what the deal was with the other three flats, that have all been sold.

Pretty gutted at the moment.

lynzpower

Has anyone lived in it before or are they all newly converted?

If they have been newly converted- ie you are the first person to live in it, im afraid that is new build. Your estate agent is talking junk im afraid. Its the lender that chooses what new build is, NOT an estate agent.

The other flats could have had larger deposits??

JJmcClure

Estate Agent swore it's not classed a new build

purplebuzz

This is HSBC's definition of a new build, so other mortgage lenders may have something similar:-

http://www.hsbc.co.uk/1/2/personal/mortgages/definitions/product-def#new_build_property

But unfortunately for you, lynzpower, is correct in saying that if you are the first person to live in it then it is classed as a new build.

keith969

Basically to a lender, a new build is anything that is either newly built or newly converted by a developer. They are often sold above market value (so the developer can make a nice profit) and, just like new cars, have an initial depreciation, at least in the current market climate. So the lender wants to avoid the risk that should they have to reposses they will lose money.

JJmcClure

Cheers for the replies everyone

I'd looked at new builds before bidding on this one and knew the deal with depreciation of prices on new builds and how much of a deposit I'd need if I bought a new build

As a result, I asked the Estate Agent if this was a new build. I remember clearly saying to the estate agent, "because this is a conversion, is it classed as a new build?" He said 'No'.

Ah well, the search starts again I guess

googler

JJmcClure wrote: »

I remember clearly saying to the estate agent, "because this is a conversion, is it classed as a new build?" He said 'No'.

Well, we don't know the rest of the conversation, but might you have got a different answer if you'd asked;

"because this is a conversion, will a typical mortgage lender regard it as a new build?"

???

As a layman, I'd have answered 'it's not a new-build, it's a conversion' but obviously mortgage lenders don't have a lay interpretation.....

JJmcClure

The estate agent and seller are confused as to why this has happened. He's sold the other three flats in the conversion without this issue and is talking to my lender about it

He says he's spoken to his firm's financial advisor who claims some other lenders would class it as a conversion and not a new build

I'm not holding my breath though