Goodwill payment from Builders for delay - Do I need to tell the lender?

xzeeex

Hi All

This is linked to a previous post I have made - my new build has been delayed by several months and so the builders have agreed to provide a 'goodwill payment' as compensation. They are going to arrange for the amount to be deducted from my completion statement.

Is this something I need to alert my lender of?

Thanks in advance!

foxy-stoat

Yes, as you are paying less for the property....if they can give you cash back after the sale, it would be best.

Neutrinno

xzeeex wrote: »

Hi All

This is linked to a previous post I have made - my new build has been delayed by several months and so the builders have agreed to provide a 'goodwill payment' as compensation. They are going to arrange for the amount to be deducted from my completion statement.

Is this something I need to alert my lender of?

Thanks in advance!

Yes it is.

davidmcn

foxy-stoat wrote: »

Yes, as you are paying less for the property....if they can give you cash back after the sale, it would be best.

That's not likely to be any different from the lender's point of view.

xzeeex

foxy-stoat wrote: »

Yes, as you are paying less for the property....if they can give you cash back after the sale, it would be best.

Thanks all. The builders legal team are going to confirm the completion statement deduction to my solicitor and the lender will be advised of it.
The builders have also stated ''The money is deducted from your balance due, so your purchase price and mortgage offer remains the same''.

Thrugelmir

xzeeex wrote: »

my new build has been delayed by several months and so the builders have agreed to provide a 'goodwill payment' as compensation.

Compensation for what?

xzeeex

Thrugelmir wrote: »

Compensation for what?

The build has been delayed for 5 months (so far), their communication has not been great either with it, I've had to chase them all the time to get any kind of update, the sales staff have given information which has turned out to be totally incorrect ... just a combination of lots of things.

I made a complaint and the sales & marketing director offered me compensation - to re-imburse the rental costs i've paid for the last few months where they have overran their timescale.

kingstreet

If the purchase price of the property is not being reduced, this is going to be a builder cash incentive, so a new CML Incentive form will be issued and this will have to go to your lender for onward transmission to the surveyor who did the valuation.

The surveyor will confirm if this has any impact on the valuation.

Cash incentive policy varies widely from lender to lender and is sometimes HTB dependent as well. No way of speculating on the outcome, so suggest speaking to your broker/advisor.