Definition of a New Build

Irvhud

Stupid question No. 34953.

When does a New Build House / Flat stop being a new build?

Is it when it is sold to the 2nd owner and therefore has previously been lived in?

Senior_Paper_Monitor

Near useless answer No. 78654

It varies by lender

VIGILANT22

What is the actual point of yr question....as NB has several different meanings

Cannon_Fodder

Mostly.

Although there are some conversions, where the work is so fundamental it is considered to have turned an otherwise old structure into a "new build".

Might depend on the context.

happybroker

it varies wildly aswell.....also Abbey will apply different affordability calculations on new build at 80% ltv for some reason.

Irvhud

The context is,

If I wanted to buy a brand spanking new house that has never been lived in on a developement my understanding is that lenders would be asking for a 75% LTV as they are more risky in terms of value.

If I wanted to buy a property on the same development but one that has been lived in and on the market for a value less than that of the purchase price for a brand new one would the lenders be 'happy' with a 90% LTV??

Hope this makes sense

VIGILANT22

Depends on how old it was...as it would probably still be classed as a NB even altho 2nd hand

luckyfool

Varies by lender. Some its 2nd hand as soon as it has been previously occupied, with most it needs to be at least 2 yrs old, with some its 4 yrs or more.

mark.burns

I spoke with Nationwide last night asking this, as Im looking at a new house and need a small deposit (as not much equity in my current house). Nationwide said they can do 15% deposits on New Build, which they classed as not having been lived in for 2 years. As the house Im looking at was built 3 years or so ago, they said they dont class it as New Build any more and can get any of their mortgages.

They stressed that this is their definition of New Build (for a house anyway - flats could be different again), but does show you really need to phone them direct.

JA1000

Nationwide told me 6 months and let me apply, others are 12 months.