Confused First time buyer

mininoel

OK long story so here we go....

Trying to buy a property - all ok until lender realises still dont have NHBC or architects certificate and refuse the funds (quite rightly) It is an 1960's house just been converted into maisonettes. I am trying to buy the leasehold on one maisonette.

I discover no company will lend without these things, and do not want to pay out for another valuation if this is the case.

Not to worry - or so I thought....seller will get a retrospective certificate (agent said this was likely).

However further phone call estate agent is now saying generally solicitors dont tell lenders that no NHBC certificate is available and i was just unlucky my lender asked for it.

No I fear seller will not get the certificate to enable me to purchase property but will get a new buyer in the hope that their lender doesnt ask.

Can they do this? - do you not have to declare this to lenders? Is there anything I can do?

Anyone who knows or had a similar experience please help me.

epz_2

sounds like a dodgy developer, do you really want to buy off somone who hasnt completed the most basic legal stuff, who knows what important stuff you cant see like sound insulation they havent done

mininoel

I do understand what you are saying but no structural work was carried out - it was all cosmetic so I am not too worried - and that is also the reason the developer didn't get the certificate.....

Just think the system sucks - solicitors should hav to all do their jobs and lenders should all make sure they get the documents or non should say they want them

chappers

It doesn't matter that no structural work was carried out, this is a material change of use and as such will have been subject to planning, building regulations etc.Most lenders will treat this as a new construction and will want the appropriate certification.As epz says this certification is the only way you know that works have been carried out correctly. firstly check with BC to find out if the property was ever signed off (to be honest your solicitor should have done this), then find out if this is acceptable to your lender. If not you can possibly get the vendor to take out an indemnity policy against any possible defects which may arise.

mininoel

The vendor had spoken about taking out the guarantee but the estate agent is saying that actually another buyer may not have this problem becuase their solicitor may not inform the lender......surely this isn't right.

Surely you have to tell the lender!!!!!!

Does anybody know of any good arguments for convincing the seller to stick with me and pay for this guarantee then complete compared to having to look for a new buyer!!!

It does have all the regulations and everything the solicitor got these and then questioned where the NHBC was for me in order to sell on and the lender as a requirement....got told there wasn't one on Friday. I now have to stress all weekend as they can't do anything til Monday but got the call from my estate agent today.

kunekune

Do you think the estate agent is trying to blackmail you into offering to pay for the guarantee yourself?

mininoel

I do think this is possible...

So I was told by a friend that my solicitor could put a notice on the land registry explaining that the property was to be sold but lenders all refused based on the lack of this certificate.....if this is true it is a good argument surely to help convince the seller to get the guarantee.

The other thing is - am I doing the right thing contacting the agnt and making these arguments to convince the seller to get ther certificate or not. Should solicitors be doing this between each other. I do really want the property and just want some advice as to what I can do to help me sort this all out.

lynzpower

mininoel wrote: »

The vendor had spoken about taking out the guarantee but the estate agent is saying that actually another buyer may not have this problem becuase their solicitor may not inform the lender......surely this isn't right.

Surely you have to tell the lender!!!!!!

Does anybody know of any good arguments for convincing the seller to stick with me and pay for this guarantee then complete compared to having to look for a new buyer!!!

It does have all the regulations and everything the solicitor got these and then questioned where the NHBC was for me in order to sell on and the lender as a requirement....got told there wasn't one on Friday. I now have to stress all weekend as they can't do anything til Monday but got the call from my estate agent today.

the thing is hun, you dont just "pay for the guarantee" the work has to be ASSESSED AND APPROVED by the NHBC - either on an individual basis if its a small developer, or on a proxy basis if its a large developer eg barratts etc.

In order to get the NHBC, the development and all PP and the building regs should be met, otherwise the NHBC wont offer a certificate of quality, which is efectively what it is.

IS there none of this info in the HIP??? It seems mad you have got to survey stage without knowing whether the property is built legally or not??

mininoel

My offer was made on the property prior to HIP being needed. All the aplnning and building regulations have been fin and the build has all the certificates of completition and everything.

The lender is simply saying (as they all have since) that they also need some king of guarantee from somebody. I have no doubt that it would get this certificate if it was asked for....the problem is convinving the seller that paying out is the best way forward for him now - and who it is done by and how that is done?

lynzpower

i just looking at the NHBC website to see what they way forward for this is.

From the wording of the website it seems like they have to have been approved by the NHBC before commencing works? http://www.nhbc.co.uk/Registeredbuilders/Abouttheregister/Answer,16605,en.html

Worth giving NNHBC a call tomorrow and pretending to be a builder and saying how do I get a warranty on what Ive just built/ converted.

the way to angle it with the vendor, is that not only can you not buy it without this certificate, but no one else will be able to either.

Doozergirl

Back when I had a proper job, H converted four flats and sold them all to people needing mortgages with no NHBC certificate. At least two of those flats have been sold on again with no issue and one has been remortgaged - we are still freeholders.

So not only was it not an issue then, it doesn't seem to have been one more recently.

Just because a builder doesn't pay for an NHBC warranty, it certainly doesn't mean that the work is not up to spec. There's no way on earth that the flats would have been bought without the relevant permissions and sign offs from the local authority.

If it was designed using an architect, then it may be possible for them to still obtain an architect's certificate.

I have to say that this really does need to be resolved between solicitors. Many people presume that EAs know more than they do. Not to say that many don't, but it isn't usually the guy with the RICS affiliation sitting on the front desk dealing with sales - he's out raking in houses to sell.

Ask your solicitor how you resolve it - whether it's you getting a different lender or them providing an architects cert.