Renovated property classed as new build?

Timewarp

Hi

Me and my partner have got a 10% deposit saved and have found a house that we both like, but one issue that came up with an online mortgage application was that we ticked the "Recently Renovated" box. The website initially gave us a Decision In Principal but later stated that it would only lend us 85% instead of the 90% required, because the property is classed as a "new build" due to the renovation.

The renovation as such just appears to be new electrical work and some new ceilings, it hasn't really affected the structure of the building or have any changes that need to be registered with the land registry.

Now the question is, would these changes be classed as renovation? Could we go ahead with the application and let the solicitors and the valuation decide whether the mortgage can proceed, rather than letting the checkbox stop us.

We have spoke to some lenders over the phone and some say a straight no on 90%, but others were saying it only affects things if the land registry are involved. Yes the easy answer is "go with the lender that says the latter", but we checked their website after the phone conversation and that seems to state what other lenders are saying in that a renovation is classed as a new build. I can understand it if it is a major overhaul of the property, but it is not.

Anyone with experience in this matter, I would welcome their input. Thanks in advance.

DVardysShadow

No experience. But are you buying from a builder or from an owner occupier? If the latter, you could try going back and telling the lender that you were mistaken about it being a renovation. But you may need to start afresh with another lender.

Timewarp

DVardysShadow wrote: »

No experience. But are you buying from a builder or from an owner occupier? If the latter, you could try going back and telling the lender that you were mistaken about it being a renovation. But you may need to start afresh with another lender.

The property is owned by a building company that took it in part exchange. We've found better rates with the lender that told us that they'd generally lend 90% anyway (so I guess that's our answer).

I was wondering if we'd hit problems further down the line I guess, we did explain it the best we could and that other lenders said 85% only but he seemed adamant that it'd be OK. Just double checking, any other comments welcome.

DVardysShadow

Rob_Leeds wrote: »

The property is owned by a building company that took it in part exchange.

If this builder did a renovation, then I think there is not much you can do about the lender's restrictions.

Timewarp

DVardysShadow wrote: »

If this builder did a renovation, then I think there is not much you can do about the lender's restrictions.

The previous owner was in the process of renovating, but instead traded his property as a part exchange from what we can gather.

I think what it comes down to is the definition of "renovation"? Are new ceilings counted, or would it have to be a change worthy of notifying the land registry?