Buying a part exchanged house

mlatto

Hi

Currently have a mortgage offer from Yorkshire Building Society on a 1950’s Semi-Detached in Scotland and we are due to exchange in the next week or so with completion expected at the end of July.

When filling out the application there was a section that asked if the current owner had owned the property for more than 6 months and at the time I was going off of the home report that said the current owner had lived there for 20 years. However I have since learned that the owner of 20 years had part exchanged the house for a new build and I am actually buying the property from a house builder who, on the title, entered the house 2 weeks ago.

If I call Yorkshire Building Society and inform them of my week how likely are they to withdraw the offer? I would assume with a lot of new builds going up that lenders would have separate policies for this type of transaction but I can’t find a specific entry except for the following.

“We require that the seller has been the owner of the property for at least six months, the commencement date of the seller's ownership of the property being the date of entry specified in their title to the property. Please report to us (see part 2) if the seller has been the owner of the property for less than six months, or the person selling to the borrower is not the owner, unless the seller is:

a personal representative of the owner; or
an institutional heritable creditor exercising its power of sale; or
a receiver, trustee in sequestration, administrator or liquidator; or
a developer or builder selling a property acquired under a part exchange scheme.”

I don’t really understand the very last part of that quote does that mean I don’t have to tell them?

Sorry for the long post!

Mortgage_Adviser

What does your solicitor says about this?

davidmcn

mlatto wrote: »

Please report to us (see part 2) if the seller has been the owner of the property for less than six months, or the person selling to the borrower is not the owner, unless the seller is:

a personal representative of the owner; or
an institutional heritable creditor exercising its power of sale; or
a receiver, trustee in sequestration, administrator or liquidator; or
a developer or builder selling a property acquired under a part exchange scheme."

I don't really understand the very last part of that quote

I'm not sure what's difficult to understand about it - you've told us that you're buying from a builder which has acquired the property under a part exchange scheme. So yes, that is one of the exceptions.

In any event, the bit you're quoting from are the lender's instructions to the solicitor, so it's your solicitor who would contact them (and tell you) if there were any problems.