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Converted Mill/Barn. New build or no new build.
JackP123
Posts: 10 Forumite
All,
I think I’m starting to uncover a grey area in New Build criteria.
I have an offer accepted on a converted barn. I have less than 15% deposit so non of the big lenders will offer me a mortgage as it’s a common factor that new builds have a max LTV of 85%
Some mortgage lenders do accept higher - and that’s who I’ve been pursuing my mortgage with.
Then came the issue that my mortgage lender didn’t accept the warranty that was coming with the home - AEDIS warranty.
Infact non of the lenders that accept higher LTV on new builds accept AEDIS!
So, I’m back to square one.
Until then, I heard back from the vendor solicitor saying she had spoken to her client and the client was with the builders who had mentioned that this isn’t a new build?!?!! The building has been there for 200 years (accepted) and the fabric of the building is original therefore the builders won’t be issuing any new build cerification as it isn’t!
But when going back to some of the big lenders and explaining this, they refuse to accept and their criteria is simply if the home has been converted and newly registered it’s a new build....
How on earth do I get around this? I’m never going to get the new build warranties as the developers are saying that they don’t need to issue a new build warranty as it isn’t - and this is as per their regulations.. but lenders disagree?
Where does this leave me and what can I do? Who’s right who’s wrong?
I think I’m starting to uncover a grey area in New Build criteria.
I have an offer accepted on a converted barn. I have less than 15% deposit so non of the big lenders will offer me a mortgage as it’s a common factor that new builds have a max LTV of 85%
Some mortgage lenders do accept higher - and that’s who I’ve been pursuing my mortgage with.
Then came the issue that my mortgage lender didn’t accept the warranty that was coming with the home - AEDIS warranty.
Infact non of the lenders that accept higher LTV on new builds accept AEDIS!
So, I’m back to square one.
Until then, I heard back from the vendor solicitor saying she had spoken to her client and the client was with the builders who had mentioned that this isn’t a new build?!?!! The building has been there for 200 years (accepted) and the fabric of the building is original therefore the builders won’t be issuing any new build cerification as it isn’t!
But when going back to some of the big lenders and explaining this, they refuse to accept and their criteria is simply if the home has been converted and newly registered it’s a new build....
How on earth do I get around this? I’m never going to get the new build warranties as the developers are saying that they don’t need to issue a new build warranty as it isn’t - and this is as per their regulations.. but lenders disagree?
Where does this leave me and what can I do? Who’s right who’s wrong?
0
Comments
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No right or wrong. Lenders make their rules which they believe best serve their business as do builders and in this case neither appear to be contravening any relevant legislation.
If all lenders say no to AEDIS then builder either has to wait for cash buyer or obtain a warranty acceptable to lendersIf you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0 -
The question is more about whether or not the lender treats it the same as a new build for underwriting purposes.
In the same way that someone who works for a limited company but owns 40% of the company is treated the same as someone who is self employed - for underwriting purposes.
Ultimately you need to find a lender who will accept the warranty (which is one I have never heard of) or they need to get a more recognised warranty. They can say no all day long but if it is not mortgageable they are going to find they struggle to sell it - I am not saying it is not mortgageable btw.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If anyone is interested - the seller gave up and recognised it was new build. Appropriate warranties provided and lender satisfied
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