New Home - Valuation

Fern0305

I am a first time buyer in the middle of purchasing a new build home. A deposit has been put down and we have a mortgage offer subject to a satisfactory valuation. The builders are putting pressure on us to sign the contract, but the solicitor is concerned the bank has not yet carried out a valuation. The house is built, roof, windows etc and the builders are currently working on the inside - estimated completion is January. The bank will not perform a valuation until near completion so the solicitor is concerned about locking us into the building contract. The builders need the contract signed to process as we are required to select our turnkey package.

I'm sure there is a process for this as new builds are common so when should the Valuation be carried out? Who should I be putting pressure on.

Thanks

kingstreet

Which lender are you using? This sound like HSBC's weird "two step" process, there they vet you and make you an "in principle" offer, subject to valuation.

You don't actually have a formal mortgage offer on which you can exchange contracts, until the valuation has been done and the other checks made.

Plenty of lenders have their surveyors value property based on earlier examples of the property and even from the plans. Exchange is usually within 28 days of reservation, but completion can be months down the road.

It sounds like you have a combination of a lender which doesn't do much newbuild business and a solicitor who doesn't know the definition of a mortgage offer.

Fern0305

The lender is Danske bank. We submitted an application with them and after 4 weeks of vetting we were told it was approved. They called us in to sign the paper work, switched our current accounts and send the papers to the solicitor. It all seems like it is a formal offer subject to valuation.

This is phase 2 of the development. There are many houses of the same build in phase 1 that can be used as an example. I've no idea why the valuation can't be completed.

Thanks

kingstreet

We're newbuild specialists, but using Danske Bank has never been on the agenda, AFAIK.

Most of the time, we're trying to get the right lender for the client, the loan to value, the incentives and Help To Buy, if applicable.

Can't suggest anything, TBH. I bet your builder is impressed.