Help

wattsy1uk

I am looking to buy a new property - it is an old mill which is being converted into 2 apartments. That is the only development on site being done by a small independent developer. I cannot ascertain whether the building has previously been lived in. I have a mortgage agreed in principle - could someone please advise what size deposit I am likely to need? Thank you

kingstreet

You are buying a leasehold flat in a newly refurbished/converted building?

I reckon this will be classed as a newbuild, so you'll need to pay attention to lenders' newbuild LTL maxima for newbuild flats.

For example;-

Halifax 80% (65% if second home or let)
Nationwide 75%
Abbey/Santander 75%.

wattsy1uk

Thanks for the prompt reply - yes it is leasehold - will it make a difference if the building has been lived in before in? Thanks again for your help

kingstreet

Here's what Halifax has to say on the subject and experience suggests other lenders will take the same approach;-

An initial occupancy/new build property is classed as any property being occupied and/or sold for the first time on the open market in its current state. These will fall into one of the following categories:

Newly built property.

Refurbished property i.e. refurbishment of an existing residential property, typically a re-furbished property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the refurbishment to be undertaken.

Newly converted property i.e. conversion of an existing non residential property, e.g. an existing mill converted into flats.
All lending decisions are based on valuation or purchase price (whichever is lower).

A property, either new or converted (as above), that has been tenanted through a 'try before you buy' or 'rent before you buy' scheme and is now offered for sale by the builder/developer.

Maximum LTV on new build properties (houses and flats) is 80% (65% if the scheme type is a second home loan or buy to let).