URGENT: No NHBC on repo home i'm trying to buy.

timmyt

any property build or converted in last 10 years needs nhbc/zurich or equiv.

nothing to do with being a repo

sorry

KH11981

Thankfully haven't completed. Everything was done except the nhbc. Was due to sign final documents this week but that doesn't look likely now as you say.

I think tomorrow i'll make numerous calls.

Firstly to nhbc to see if they do in actual fact have nhbc's for all the neighbouring flats and why not mine.

Then i'll call builders to see if they have anything or can help in anyway.

Then i'll call Natwest who my mortgage is with for advice.

Obviously my lawyer should be doing stuff in the background while i'm doing this but it's not looking good.

Even she could not understand why this document is missing. it doesn't really make any sense for a flat that is 5 years old and has had a least 2 previous owners that I know of????

timmyt

DO NOT call your lender as that could scupper your mortgage and it be withdrawn. Always ask your lawyer.

Have you exchnaged contracts is my point (i.e paid over 10% deposit) It still sounds like you have. Tight between Friday and now if you have not.

Your lawyer will have the flat next door's NHBC ref, so NHBC will surely know. With flats, often lawyers miss NHBC, particulary cheap charging lawyers, so that fact does not give me much confidence.

I suspect the original owner never 'accepted' the offer, and this is quote common....a nightmare to sort out, as you are finding.

KH11981

Thanks for that, I won't call my lender.

I had paid the deposit into my lawyers client account today but it has not been transfered to my lender(I checked) so I definitely have not exchanged thankfully.

My lawyer said she had checked with both nhbc and zurich but neither had the flat registered.

If as you said the original owner never accepted what does this mean and can it be fixed? My lawyer gave impression that unless something arises tomorrow the whole deal is off. I still don't understand how previous owners got mortgages if the document doesn't exist.

It's so annoying to have the whole thing scuppered so close to the deal being done because of one silly document.

timmyt

nhbc will have to send out acceptance papers to your seller, but it takes weeks for it to be processed.

[your lender does not get your deposit, it goes to your seller]

the deal need not be off. get in under licence/permission on the basis of an exchnage conditional on (1) the seller producing the NHBC by X...ok the risk is that you have to move out if they fail...but sounds like if at least NHBC over the phone can excplain why this flat has no cover and you can take comfort from that, that it might be ok (2) on your mortgag offer still be offered to you by the date of X coming around

If the deal goes off, you must look to your lawyer why he left this so late

Mike_Teas

Have you checked with your lawyer if indemnity insurance is available for lack of NHBC ? Indemnity Insurance seems to be available for most problems theses days

timmyt

indemnity insurance is not, nor do lenders accept it.

Mike_Teas

timmyt wrote: »

indemnity insurance is not, nor do lenders accept it.

Thanks for clarifying that it's just that I spotted the following on line https://www.oncover.com/pdf/policywordings/9_lackofnhbc.pdf ( seems to insure lenders so I would have assumed "some" lenders accept it.

I do of course bow to your experience in this area though.

Milliewilly

timmyt wrote: »

any property build or converted in last 10 years needs nhbc/zurich or equiv.

nothing to do with being a repo

sorry

No - the NHBC lasts 10 years, the CML changed the rules in 2003 to advise against lending without one so properties built prior to 2003 will be OK.

Zurich ceased to underwrite the new build market last year.

Mike_Teas

This flat was built in 2004/05 according to the original post