New Build House, No NHBC certificate

house-hunt_2

Hi Folks,
This is my first post, but I have been looking at this site for some time and I am sure someone on here can help me

I have found a new build house that I would like to buy that looks good value. The reason it is good value is that the developer has gone bankrupt and the house has been repossessed. It is virtually finished and needs tidying up. It does not have a completion certificate from buiding control but they have inspected it all the way through and are happy with it.

My concern is that it does not have an NHBC certificate. Does this make it unmortgageable. Can I somehow get a certificate? I have asked my solicitor and he hasn't come across this before.

Can anyone help. I would love to buy this house.

Fire_Fox

Why haven't you got a completion certificate if building control have been out already? Are you willing and able to pay for a full structural survey (I would)?

clutton_2

if the developer was a member of N HBC why not call them and explain your dilemma and see what they suggest - this will not be the first time this has happened

unless you get authentication as to its building compliance i doubt if any lender will lend you the money to buy it - as they need to know they will get their money back if you default

house-hunt_2

Thanks for the replies,
Just to clarify, The house is being sold by the bank as seen, and is incomplete. Although only needs minor finishing works.The building inspector is happy with the work so far, but will need the new owner to finish the works and then apply for a completion certificate.I would have to buy the house first and do the work to get the certificate.

I did not think to contact nhbc direct. Not sure if the builder was registered with them. Will contact them tomorrow.Any more advice would be appreciated.

Doozergirl

It's unmortgageable in it's present condition and it needs a 10 year guarantee of some kind to be mortgageable.

Aside from NHBC, it's worth speaking to the architect to see if they would be able to provide one - either way, the house has to be finished first to get it's completion certificate so it's basically a cash purchase or one supported by business banking.

clutton_2

some lenders i believe will accept an Architects Certificate if there is no NHBC - the wise dozergirl, may know more about how to get this than i do

Richard_Webster

Issue here is whether an architect or other professional whose certificate would be accepted has been supervising the construction - if not it is going to be difficult if not impossible to get someone to give a certificate at this stage.

Therefore it does look like a cash purchase for someone who is prepared to finish it off and sit there for 10 years before selling it.

house-hunt_2

Hi folks, Time for an update,
I have made enquiries and found out that the original builder was NHBC registered. I have also rung NHBC who tell me that if an NHBC builder finishes the work I will get a certificate.

I have doubts that a NHBC builder would consider the job as I imagine the work would only cost about £1500 plus materials. He would have the hassle of the paperwork and I think he would be liable for any repairs that are needed in the first two years. Anyone know if this is correct?

The architects certificate sounds interesting, not sure if one has been involved in the building process but I will try to find out.

To make my position clear I have sold my house and staying with familly. I could just about afford to pay cash for it and I am buying as a long term home. I would not like to buy if unmortgageable
because if my circumstances were to change I would not be able to sell, and it would have eaten all my cash.

Doozergirl

house-hunt wrote: »

The architects certificate sounds interesting, not sure if one has been involved in the building process but I will try to find out.

To make my position clear I have sold my house and staying with familly. I could just about afford to pay cash for it and I am buying as a long term home. I would not like to buy if unmortgageable
because if my circumstances were to change I would not be able to sell, and it would have eaten all my cash.

It's likely the architect would have submitted the plans to the council for planning in the first place so you'll find their details marked as the 'agent'. I wasn't clear in my first post, I was indeed referring to an architects certificate not 'one' like I actually said! However, if the builder was NHBC registered then I doubt that the architect would have overseen the work for you to get the certificate, however they probabbly have a relationship with the original builder so you might get some more info that way.

I suspect that this is going to be a non-starter though. Even if you get someone's word that they will provide a warranty, you are going to have to purchase the house to get all of this admin done before purchase. Warranties cost money and you don't want to pay out for one before you own the house.

jlmills1984

There is an alternative! I have recently been in the same position (however I am the seller and my builder went bust)

LABC New Home Warranty is a new(ish) warranty provider who can carry out completed house warranties in circumstances like these. (The LABC part stands for Local Authority Building Control incidentally!) They liase with the local Building Control for info and then carry out an inspection of the premises to assess whether it poses a risk to the insurer.

If you google it their site comes up!

Hope this helps.. It was a lifesaver for me!!:j

chappers

What have NHBC said with regards to the fact that so little work needs carrying out, what are the outstanding points needed to stisfy them/BC, it may just be a case of final inspection needing to be carried out.

Can you give us an idea of the outstanding works £1500 sounds like a bit of cosmetic work unless something like a staircase/boiler etc is still missing.