Confused First time buyer

Doozergirl

I wonder if someone has ticked a box on a mortgage application somewhere stating that it is 'new build'? That would start a furore if there were no NHBC or equivalent in place.

lynzpower

I think you are right on this dooz...

I bow

chappers

mininoel wrote: »

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.

.

This is true but risky, if any purchaser's solicitor is doing his job properly he will flag this up. I know it's a pain but how would you feel if you bought a house and found that it had a serious defect and needed serious work and there was no indemnity or warranty in place and subsequently you had to foot the bill.

I would leave this totally in the hands of the vendor and if they cannot satisfy your solicitor and lender then walk away. Basically the vendors solicitor didn't do his job properly when they purchased the property.

mininoel

The seller is the person who did the work on the property to convert it - it has not been sold since it was converted......

I know you are all right and I need to get my solicitor to resolve this, they will be working hard on the case on Monday. It just sucks it all happened on a Friday as I have had the whole weekend to stew.

I want lots of reasons to convince the seller he should get this certificate - would this be done through his solicitor (via mine) or through the agent?

You are all so much help and thank you so much, I know I should walk away if he doesn't get the warranty abd I will but I will really hate having to so want every possibl way to make him get it ready.

Doozergirl

I really am questioning whether a warranty is a requirement of buying a conversion with a mortgage.

NHBC covers the structural elements of new build. A conversion means that a house already exists and provided they haven't undertaken massive structural changes, the fabric of the building will remain easy enough for a surveyor to read. The structural changes made will be detailed within a building regulations completion certificate and will be evident in the original plans.

Flicking through 'lending restrictions' of various lenders, I can only find the requirement to provide warranties for new build. A conversion isn't a new build, it's a conversion (surprisingly enough!) of an existing building into seperate dwellings and it isn't all that complicated. Less complicated than some refurbishments.

I certainly don't agree that you should walk away simply over a certificate as it certainly doesn't mean that the work hasn't been carried out properly.

H tells me that our flats were sold without even an architects certificate. The thing with conversion is that you tend to put up more walls than you knock down.

lynzpower

Having reflected on what Doozer is saying, I think that the conculsioon we have copme to is that an NHBC cert IS NOT needed as the building is not new. Yes the conversion is that needs PP & building regs, ( which is a seperate issue) but the flats may be new, but the house IS NOT. therefore the bricks & mortar and rood & structure remains NOT NEW BUILD.

therefore, there is a possiblity that NHBC does not apply, as the property is not newly built, only newly CONVERTED and thats the differnece.

Will you let us know the outcome tomorrow, Id be really interested in this ?

mininoel

But every single lender I have spoken to and my broker has spoken to says that they need the guarantee for a conversion as well even if there is limited/no reall structural work.

If no lender will lend then I have no choice but to walk away!

lynzpower

which lenders have you spoken to?

Who has done the survey and which sort of survey is it?

Doozergirl

"If you are buying a new home you will need cover like Buildmark to help you secure a mortgage. Mortgage
lenders prefer to lend on homes that have this type of cover because they know the home will have been
built to specified standards of construction.

If you are buying a converted property your lender may not require you to have cover. However, if you
choose a converted property with Buildmark you will know that NHBC has carried out a technical

investigation of the project to check its viability and that you have protection if problems arise."

From: http://www.nhbc.co.uk/NHBCpublications/LiteratureLibrary/HomeownerDocuments/filedownload,15896,en.pdf

Which the Lynzpower just sent me

So you need to check specifically with your lender whether a warranty is required with conversions, then you need to give your mortgage adviser a whipping if it is, and then find a product where you don't need a warranty.

mininoel

I have spoken to all the natwest, nationwide, a&l, Llods, HSBC, Halifax, some building socities - all say the same.

The survery was the one done for the bank (valuation survey only to secure my mortgage) it even says on there that legal advisors need to ensure NHBC or similar is in existence.