Mortgage for a completed new build

wales007

Hi,

posted this in wrong place earlier,

Can anyone help/advise i have a complete new build/ self build 3 bed house for sale. The potential buyers are being refused a mortgage even though they are putting a 50% deposit because the house has a completed 10 year warranty from the LABC and not a new build 10 year warranty. The LABC is similar to the NHBC. Two lenders have brought this up Santander and Nat West. Does anyone know why this could be??

Thanks for an feedback

poppy10_2

wales007 wrote: »

I have a 3 bed house for sale that was a new build/ self build completed in 2008. It has a LABC completed house warranty for 10 years, which is similar to a NHBC just a different company.
The potential buyers are putting down a 50% deposit but have been turned down for a mortgage by two lenders due to the fact that the warranty is for a completed house and not a new build warranty can anyone explain why?

Haven't you answered your own question?

The mortgage got turned down because you have a completed house warranty and not a new build warranty. You have a new build house, therefore you should have arranged a new build warranty when you were building it; the surveyors would then have inspected the site at various key stages of the build and perform a final inspection before issuing the warranty. The cheaper completed house warranty comes with a lower level of cover and is intended for properties that have already been built but for some reason do not have a valid warranty (for example if the developer has gone into recievership and thus voided the warranty.). It is not really intended for cases where the developer has just forgotten or chosen not to arrange a new build warranty.
Was there a particular reason why you don't have a new build warranty?

wales007

Hi

Thanks for reply. The reason the warranty was not taken out during the build was the house was not going to be sold but lived in. What I dont understand is the house was inspected during the build by building control as passed , a completion certificate was issued. it is only now that the house has to be sold so the LABC has inspected the house and issued a completed house warranty (10 year from completion 2008) .
What reason could there be for mortgage lenders not lend on this property.
It has completion certificate and a 10 year warranty. where is the risk?
The completed warranty was considerably more money at just under £4k