Survey states new build, loop hole?

indigo_child

I am a 1st time buyer and have recently started to purchase a 1930s maisonette. We started to get our mortgage together and got to the point of having the mortgage valuation survey done. It came back and to our surprise they claimed it was a new build!... out IFA double checked this but the mortgage companies surveyors are sticking by their guns as the property had a lick of paint in each room, new carpets, a bathroom and kitchen fitted whilst no one was in residents there. This has meant that our original mortgage is now null and void as new build properties can only have a max 75% mortgage according to the our original proposed lender which we were not offering (not far off, but no cigar!).... we can get another mortgage but this means that things will be much tighter than is comfortable (we will need to "borrow" (gift) more from our family and have less income spare for essentials each month) and as I have a young family to support and the property is clearly not a new build and has just had what anybody moving in would renovate I find it completely ridiculous that they are doing this!

Is there a loop hole a can get through to get our original mortgage?!... can we go on a tracker mortgage for a period of time and then fix after a while when the bits and pieces they say have made it a new build have aged so their claims are negated? Any advice welcome as we need to go quickly with this!!

Thank you!!!!!

Simon_gloster

New build is new build. I feel for you on this one. For what you have spirits not a new build. If it's to be inhabited for the first time in its current state then maybe they are using this format. It will depend on the extent of work done and no one can judge unless they have seen it.

ACG

Take a photo and send it to the lender? I would be sending that over to my account manager at the lenders if its clearly a 1930s build and have them argue your case.

To be honest, i think there are other issues that need addressing here going off your post. You shouldnt be pushing yourself to the point where you are worried about paying a slightly higher rate. Interest rates are at an all time low, there is only one direction theyre going and its a case of when...not if.

Also, do the lenders know your borrowing your deposit? Im guessing they would knock the mortgage on the head if they did know.

indigo_child

Hi, thanks for the replies!

I am indeed going to try to argue the case! Which is why im here trying to get some more advice as im very new to all this. im a fast learner so hopefully ill get there!

ACG, although I am grateful for the concern, I feel that you are coming on a little strong without knowing any specifics! I am really grateful, but dont need warnings about my borrowing habits! to put your mind at rest... after a long 6-7 years i have cleared all debt in my name and have for many years not had either and overdraft or credit cards. i have built up a good credit score which has enabled me to be approved to borrow for a house. i have savings ear marked for repairs, legal fees and a small amount for if anything goes wrong. i never buy anything i cannot outright buy and save for anything i want. we decided to purchase a property 30K under what we were allowed to borrow so that we had lower mortgage payments and some breathing room. we have also been very generously gifted our deposit from a family member, we have always been transparent in this and i am aware that this is entirely satisfactory from every angle.

However this was all based on a a roughly 80% mortgage where we were able to keep money back for a few odd jobs still to do and have repayments of roughly £565 fixed for 5 years and repayments over longer compared to having to borrow and extra 1k for a deposit, having to dig further into my savings for the extra bits and paying £100 extra on a mortgage each month which is only fixed for 2 years as the halifax have decided that they wont lend out for as long as nationwide. this makes a big difference to our situation in the long run, and although it wont cripple us, it wont be nice and i see absolutely no reason for it to happen

I am very careful with money, to the point of being obsessive, i have absolutely no intention of getting my family into a situation that will cause us harm which is why im trying to find a solution. hopefully there is one!

ACG

I have a tendency to say things as i see them. Its not meant to offend, but at the same time if me being strong makes you think about interest rate rises/affordability (if you hadnt already) then that can only be a good thing.... better now than when rates do rise and your left without a paddle. Some people just see the maximum they can get and go for it, without thinking about their situation, that isnt the case with yourself but it did not read like that on your first post.


Im just going off this when i say about the borrowing the deposit...

we will need to borrow more from our family and have less income spare for essentials each month

Sorry if i have it wrong, but i only have the post to go off.

indigo_child

thats ok , i kept the 1st post less detailed as didnt want to clutter it as from experience long ones become convoluted and are easy to misread! obviously my tactic had the opposite effect for you i dont feel that it read like it would be a dire situation, but a stretched one, sorry that you were confused!

also, I have taken a long time to inspect interest rates and their effect on our future, and although not a financial guru have weighed up the pros and cons and have a few accountant friends i refer to in cases of confusion.

anyway im not here for an argument and i feel this is now off topic! happily my borrowing habits are A OK, and the main issue is the fact the mortgage company are playing silly &*%$£ and they need to stop because its thrown everything out of kilter.

So i would still like to welcome any advice from anyone who has any ideas that may help

thank you!!!

ACG

I suppose we did go off a little.

I would go with my original post though, get a photo of the property (or the estate agents booklet thing - maybe even something off zoopla that shows when the property was previously sold and the sale price.

Get your IFA to get his account manager at the lenders to get involved. The account maanger will want the business as it goes on their targets, the IFA will want the business so they get paid. Some account managers are better than others, but the good ones will pull their fingers out.

Ultimately the lender does go off the valuers comments, but common sense may prevail.

kingstreet

This is normal. If the property is changing hands for the first time after renovation or conversion, it's classed as newbuild, even if it's 200 years old.

Halifax criteria, for example;-

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.

Lenders will treat this as a newbuild, but their maximum loan to value can be higher. Nationwide lends upto 85% and Skipton to 90%, although in the latter case, you should check their acceptance of the property first.

indigo_child

ah thanks again!

yes ive just been trying to understand nationwides web site, i think they are classing our maisonette as a flat, so are only offering a 75% mortgage.

So its worth having another word with the IFA to see if we can get nationwide to come over to our side then?

indigo_child

also, if this isnt possible as i said before im willing to risk a short while on a tracker hopefully before rates start to climb again. would its new build status lapse at any point to make this a feasible option?

kingstreet

Your broker needs to discuss the property type with the potential lenders to determine how it will be treated.