HSBC & New Build Rules

HaloNut

I'd like to borrow some expertise from the forum to deciper HSBC's policy on new builds.

This is taken directly from the HSBC Mortgage FAQ

A New Build Property is defined as:

• a building that has been built in the last 24 months which includes property bought directly from a builder or developer
• a property that has yet to be occupied for the first time

The part I'm specifically interested in is the first bullet point. Does this mean a property of any age currently owned by the people who built it counts as a New Build?

Here's the scenario:
I'm looking to buy a house that was built 3 years ago (i.e. greater than 24 Months) but was a self build and is owned by the person who built it.

I don't want to waste an Mortgage application having it affect my credit rating and potentially end up in the Mortgage Application Spiral. :eek:

Thanks.

kingstreet

No. The property ceases to be classed as newbuild two years after its construction, or once it has been occupied by its builder or converter.

Thrugelmir

HaloNut wrote: »

I'm looking to buy a house that was built 3 years ago (i.e. greater than 24 Months) but was a self build and is owned by the person who built it.

What's the warranty?

_Andy_

Ring HSBC and ask.

HaloNut

I asked HSBC and they didn't seem to be 100% sure of what it meant.

They said:

that if the valuer check with the Land Registry and the building was never officially declared as occupied by the builder then it was considered a new build.

I was like :huh: - what does that mean? They proceeded to say;

Like if it was registered to a company and not to an individual.

Surely the Land Registry is only concerned with the plot and not what is actually built on it right? I don't think I really understand their policy and for that matter neither do their staff. I guess we just have to give it a try!

@Thrugelmir
There's a 10 year warranty from Self Build Zone, which our surveyor said was equivalent to what the banks require, and most banks we've inquired with seem happy to accept it.