No warranty on a converted flat

Bela86

Hi there, could anyone help me please?

I am about to buy a flat, as a first time buyer. Everything went great, till we found out that there is no warranty of any kind on this flat (advertised as "ideal for first time buyers"), therefore most of the lenders will refuse to provide mortgage. I have tried to talk with the developer who seemed to be rock solid, and turned me off straight to the estate agent (whom I got the instruction to call the developer). Nothing happened. Now I just found out, that the other flat (on top of mine, also converted by the same developer, but sold by an other estate agent), is been mortgaged by NatWest, and its owners are moved in already.
Now my question is, who is responsible for all this, and who should I push to find a solution in this case? The estate agent did not say a word about the warranty issue, the mortgage broker therefore was unaware of this, the developer don`t care about the whole thing, and I didn't hear a thing from my solicitor since two weeks now. I have already paid around 500 Pounds for the solicitor and the broker, so that I would try not to lose.
Any advise would be greatly appreciated.

Thanks,
Bela

davidmcn

Presumably the other flat was offered something - find out what?

When you say no warranty, do you mean not even a certificate from a supervising architect etc?

Bela86

Thanks for your reply David,

The other flat`s owners went with a different agency and broker, they ended up having a mortgage from Natwest somehow. They said, they had no issues with warranty at all, however they had a structural survey done. I do not know if that matters though.

I do not know much about the warranties. This whole thing seems like very unprofessionally handled, as no one knows anything about it. My broker just simply said that it is not mortgageable at it`s current state, but did not come up with an alternate solution or an explanation of any kind. The estate agent has no idea what to do, did not give any advice.. This is why I ended up here asking for advice.
I was thinking about to change the whole team, to those people who organized the purchase for the other flat`s owner. But that way I would ended up loosing 500 Pounds, so I would firs try to find a solution.

Just a short addition.. The building has a shop floor, on top of that, was a storage facility which have been converted to two individual flats (one on top of the other), by the same developer. For this reason, both flats should come with the same conditions.

MortgageMamma

Speak to a whole of market mortgage broker. You need an experienced broker with unrestricted access to the whole of market. If you are using an estate agency broker they will be tied to a panel of lenders "representative of the whole of market". Its a misleading term, you need someone who has access to every lender.

The broker has failed to get you a mortgage off their "panel" which could be as few as 10 but often is around 18-20 lenders. It does not mean that you can't get a mortgage. Natwest are a helpful lender but you may not fit their criteria so don't try and go it alone you could cost yourself more money. I can't see what grounds the broker has to charge you a fee if they have failed to secure a mortgage for you.

You may need a warranty on the conversion but there could also be lenders who do not require this. There are many more lenders available than the high street lenders. There are insurance policies you can take when instructing solicitors which insure against costs of a failed transaction. Ask your solicitor if you have this.

MovingForwards

Some mortgage companies do not lend on properties over shops, therefore they would deem it unmortgagable.

Is your broker a whole market broker or recommended by the estate agents/builder?

davidmcn

Bela86 wrote: »

I do not know much about the warranties. This whole thing seems like very unprofessionally handled, as no one knows anything about it. My broker just simply said that it is not mortgageable at it`s current state, but did not come up with an alternate solution or an explanation of any kind. The estate agent has no idea what to do, did not give any advice.. This is why I ended up here asking for advice.

You haven't mentioned your solicitor. What advice are they giving?

Bela86

Thank you for your reply,

He was indeed recommended by the estate agents, but he does have access for the full market, as he is working for a financial solutions company. The reason the lender turned us off was because the lack of warranty. They had no problem with the shop below.

Bela86

Nothing really.. I haven`t heard of them since two weeks now. I will try to contact them again soon.

Bela86

Dear Mortgage Mama,

Thank you for your reply. He should have access for the full market, but he never had an issue like this before, therefore has no experience I believe. He was trying to find out who they got the mortgage from, but without success for two weeks now, so I asked the buyers myself. That's how I know that NatWest is involved. As a High Street bank, I am not sure though, how they provided mortgage, without warranty... I meet most of the criteria, if not all, as I have "good background" and reliable income, so that should not be an issue.
He took 100 pounds at the beginning, which is non refundable. Also the solicitors took 400 to carry out searches, also non refundable. Thanks for the advice on the insurance though. I will look into it.

davidmcn

It's easier for us if you use the Quote button, then we know who you're replying to.

Bela86

davidmcn wrote: »

It's easier for us if you use the Quote button, then we know who you're replying to.

Oh, sorry. Will do now.

"Nothing really.. I haven`t heard of them since two weeks now. I will try to contact them again soon."


This was my answer for you.