Broker says we don't need to tell our lender about non-cash incentives

drc90

Hello,

We're currently in the process of having our valuation done on a new build by our lender. We've had the kitchen thrown in for free but there are no financial incentives such as stamp duty etc.

We've queried our broker asking whether these non-cash incentives need to be declared to our lender in case it affects the valuation but they are adamant that it's not needed. I'm not convinced.

Could somebody in the know help me out here? If they're not declared, and later the lender finds out about the "free" kitchen, is this going to screw us over?

Lunchbox

drc90 wrote: »

Hello,

We're currently in the process of having our valuation done on a new build by our lender. We've had the kitchen thrown in for free but there are no financial incentives such as stamp duty etc.

We've queried our broker asking whether these non-cash incentives need to be declared to our lender in case it affects the valuation but they are adamant that it's not needed. I'm not convinced.

Could somebody in the know help me out here? If they're not declared, and later the lender finds out about the "free" kitchen, is this going to screw us over?

Your solicitor and your lenders valuer will receive a completed disclosure of incentives form from your seller. It's up to the seller to complete this form, not you, so I wouldn't worry about it unless you notice any errors when the valuation document comes through.

kingstreet

You don't declare non-cash incentives for 99% of the lenders I can think of. I can't think of a lender which would have an issue with it even if it did come up later.

BTW they will be listed on the CML form given to the surveyor at the valuation inspection, so don't worry about it.

Lender?

drc90

Thanks.

The lender is Halifax. I'm probably just over-worrying but I've read things on here that said *everything* needs declaring and I believe the valuation is being done based on the assumption there are no incentives.

kingstreet

There is nowhere on the Halifax system to enter non-cash incentives.

They are only interested in cash incentives and their impact on the valuation where upto 5% is permitted on a standard case (lower on shared equity at a higher loan to value).

minimike2

I am interested in how the kitchen has been "thrown in".

I've never heard of someone buying a new build with no kitchen already in.

kingstreet

"Free" upgrade?

drc90

Free upgrade yes, integrated appliances.