My New-Build Nightmare

halys

Hi all,

My journey to “start fresh” with a new build flat through Help to Buy is turning into an absolute nightmare!

Long story short, I am now on my second application to try and get a 1st floor new build flat. My first application with Halifax was declined, due to the surveyor not being happy with the flat being over a commercial premises.

I then went on to Nationwide, to be told the exact same thing. When I pressured the Developers to ask how other people were securing flats on the first floor, she looked into it, and said she didn’t know why the exact same surveyor from Countrywide approved another flat on the 1st floor but not mine?

My mortgage broker is now appealing for me, but says it will take 3 to 4 working days to get a response.

When I enquire about my options going forward they are:

• Apply with Santander (who wouldn’t take my application until my existing house is sold and my home improvements loan is cleared off)
• Move one floor up, which is more money, so I will have to re-apply for HTB and stretch finances further
• Get my deposit back and walk away

I am loathe to all of the above, as I already have two hard searches on my credit file, and on principle now, I feel like I shouldn’t have to walk away or pay more when it’s not my issue, it’s the developers/surveyors. In both lending cases they have said the building is being declined, but not me.

I am feeling quite hopeless/ stressed/ dejected at present. There are no other new builds in my area with access into London, so I am not quite sure what to do if this all falls through.

Does anyone have any wisdom to impart?

Kind regards

Cakeguts

If you can't get a mortgage for it now what will happen if you want to sell it in the future?

What is wrong with a not new flat?

PasturesNew

Many lenders don't lend over commercial premises - but this is something your broker should've taken into account when picking the lender for you.

Maybe the others buying are borrowing less and/or buying as a BTL investment and not to live in.

halys

Cakeguts wrote: »

If you can't get a mortgage for it now what will happen if you want to sell it in the future?

What is wrong with a not new flat?

When speaking with the developers, this is apparently a common problem when a new build is being built as developers have nothing to compare to or assess- I understand this, but doesn't help me at present!


If I could afford a not new flat, that would be fabulous- I have had to get the new build through Help To Buy as that is all I am able to afford, and that is outside of London... I shudder to think of London prices!

PasturesNew wrote: »

Many lenders don't lend over commercial premises - but this is something your broker should've taken into account when picking the lender for you.

Maybe the others buying are borrowing less and/or buying as a BTL investment and not to live in.

I agree, and I am planning on complaining when the whole mess is sorted, but need to secure a place to live first!


I was declined my mortgage on the basis of it being over a commercial area- even if it was BTL or borrowing less, the flat is still on the same floor over a commercial area and was assessed by the same surveyor so sorry, I may be having a thick moment, but not sure how that would make the circumstances any different???

kingstreet

More often than not, lenders will consider such property subject to the type of commercial premises below and to surveyor's comments.

Did you use an experienced newbuild broker for this as I would not have put the case to Halifax nor Nationwide without first speaking to Colleys, Halifax (LBG) surveyors?

halys

kingstreet wrote: »

More often than not, lenders will consider such property subject to the type of commercial premises below and to surveyor's comments.

Did you use an experienced newbuild broker for this as I would not have put the case to Halifax nor Nationwide without first speaking to Colleys, Halifax (LBG) surveyors?

Originally, I went with the broker offered through the Estate Agents selling my house who told me I wasn’t eligible for Nationwide and put it through Halifax. She later admitted that she hadn’t thought to ask in regards to the commercial premises and only found out when Halifax said no. She also will not return the broker fee, but that’s a whole different kettle of fish!


The current broker is the one offered by the developers so one would assume (?) that they know what they’re doing when it comes to new builds.


I was told by the broker today that it's Countrywide Surveyors and not Nationwide who have to approve this?

kingstreet

Countrywide is Nationwide's survey panel manager, so they instruct a surveyor to carry out the valuation (usually themselves) then forward the report back to the lender and this will carry the surveyor's recommendation for or against.

halys

kingstreet wrote: »

Countrywide is Nationwide's survey panel manager, so they instruct a surveyor to carry out the valuation (usually themselves) then forward the report back to the lender and this will carry the surveyor's recommendation for or against.

I understood this, but what I don't understand is why I was declined and another flat on the same floor approved??? They are all carbon copies of each other...the only difference is the side I'm on has a terrace and the other side has Juliet balconies.

davidmcn

halys wrote: »

I was declined my mortgage on the basis of it being over a commercial area- even if it was BTL or borrowing less, the flat is still on the same floor over a commercial area and was assessed by the same surveyor so sorry, I may be having a thick moment, but not sure how that would make the circumstances any different???

If they're only lending, say, 50% of the value, there's less risk of them repossessing in the first place, and even if they do they're much more likely to get their money back than if they're lending 90 or 95%. The surveyor just reports factually what's there, the lender has their own criteria for what they'll accept.

halys

davidmcn wrote: »

If they're only lending, say, 50% of the value, there's less risk of them repossessing in the first place, and even if they do they're much more likely to get their money back than if they're lending 90 or 95%. The surveyor just reports factually what's there, the lender has their own criteria for what they'll accept.

Thank you, understood


I'm at 75% - a large chunk is coming from my current house sale, but I needed HTB to afford.


I understand where you're coming from, however it does come across as slightly prejudiced to lend to one and not the other- Halifax was a straight up "no flats on the 1st floor", whereas this just seems to be if the surveyor feels like being nice or not that day!