Definition of a "new-build" for LTV purposes

kingstreet

homebuyer99 wrote: »

The part about the house being lived in its current state? It hasnt been since its been decorated.

That means since construction or conversion. As this property has been lived in since it was constructed and it hasn't been converted, perhaps from a commercial property, it doesn't apply.

Decoration doesn't constitute renovation or conversion in any way, shape or form.

You planning on having a survey on top of the mortgage valuation? Why don't you ring a local surveyor and ask for the price of a homebuyer's report and ask if he'd treat such a property as a newbuild as you're worried about something you've read?

homebuyer99

It also says in their mortgage conditions that "if the vendor has owned the property for less than six months we will investigate and may/may not decide to lend"

kingstreet

Yes, and they have provisions for this kind of thing. For example, Halifax has in its criteria;-

The following cases are exceptions where it is acceptable for the property to be sold on within six months of acquisition by the seller.

Where sales are by:

a personal representative of the registered proprietor; or
an institutional mortgagee exercising its power of sale; or
a receiver, trustee-in-bankruptcy or liquidator; or
a developer or builder selling a property acquired under a part-exchange scheme.

and I'm quite sure Abbey will have something similar.

If you're really concerned about this, all I can suggest is you contact the lender and ask them outright if it will be a problem. Alternatively, your solicitor should be experienced enough to judge the likelihood of a problem.

homebuyer99

For example if I applied for a 200 k mortgage but they decided they would only lend 190k would they tell my broker this or would they decline it?

I .e 190k approved buyer needs extra 10k deposit....

kingstreet

homebuyer99 wrote: »

For example if I applied for a 200 k mortgage but they decided they would only lend 190k would they tell my broker this or would they decline it?

I .e 190k approved buyer needs extra 10k deposit....

Without knowing the reason, it's difficult to say.

For example, if the reduction is as a result of a downvaluation in the property, it would be a different answer to a simple reduction due to income or affordability issues.