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Countrywide saying my extension a new build before a valuation and will not explain
Posted: Fri Mar 10, 2017 1:02 am
Has anyone had a situation where Countrywide ask for a 10 year new build guarantee for a house and say it's a new build when a property is extensively renovated and refurbished but all council consents were for extensions and factually it's not a new build. I can't seem to get hold of anyone for them to explain - I think they just looked at photo's online. The mortgage is with Tesco and they say they follow their rules but looking at the CML website a 10 year guarantee only applies to new builds or new conversions (ie splitting up a property into multiple dwellings or. Barn conversion). Has anyone had this issue and got Countrywide to change their mind. They haven't even done the survey yet - so it's ridiculous. How can a home factually not be a new build and then a bank has a strange definition or view that it is and then impossible to get a 10 year new build warranty as its not a new build!'
Posted: Fri Mar 10, 2017 4:15 pm
Lenders treat conversions and renovations as newbuilds.
Here's Halifax criteria as an example;-
An initial occupancy/new build property is classed as any property being occupied and/or sold for the first time on the open market in its current state and includes converted and refurbished properties. These will fall into one of the following categories:
Newly built property.
Refurbished property i.e. refurbishment of an existing residential property, typically a re-furbished property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the refurbishment to be undertaken.
Newly converted property i.e. conversion of an existing non residential property, e.g. an existing mill converted into flats.
A property, either new or converted (as above), that has been tenanted and is now offered for sale by the builder/developer.
Property must be subject to one of the following building control and monitoring requirements:
Building Standards Indemnity Scheme from a warranty provider accepted by Lloyds Banking Group (see below for acceptable warranty providers)
Professional consultant where small, solely residential development of no more than 15 units – consultant must meet qualifying criteria
An acceptable guarantee from a development corporation or local authority where they are the vendor.
A final inspection is required to confirm completion of the new property unless covered by an acceptable new build warranty provider.
Barn conversions / converted properties are subject to a full retention pending completion of works and subject to new build criteria.
Maximum LTV on new build properties (houses and flats) is 80% (75% if the scheme type is a second home loan or buy to let).
Posted: Sat Mar 11, 2017 7:21 am
Might help if OP gave us more detail about what work has been done.
Posted: Sat Mar 11, 2017 10:40 pm
I think all lenders will treat it as a new build.
Here is nationwide:
The definition of a 'new build' is a property that has not been purchased (even if it is or has been occupied) within two years of being newly constructed, converted or refurbished.
A new build is defined as any property built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years.
Barclays' definition of a 'new build' is a property that was first registered 2 or less years ago OR the property is subject to first sale by the developer, regardless of time or any rental usage in the interim. This also applies to newly converted properties.
New Build is not limited to properties just built, but those converted or significantly altered. Most will want some sort of insurance backed warranty such as NHBC however if you speak to the lender to find out what they will accept you may find you already have something that is acceptable already.
Posted: Sun Mar 12, 2017 6:23 am
But we have been living it in since refurbishment and not a developer - surely then it shouldn't apply?
Posted: Sun Mar 12, 2017 10:13 pm
Does anyone know what Tesco defines as a new build?
Posted: Mon Mar 13, 2017 2:27 am
It was a front extension. Single story back extension and a side extension.
Posted: Mon Mar 13, 2017 8:48 am
I dont mean this to come across as rude, but none of the examples I posted state who must have carried out the works in order for it to be classed as a new build.
It also sounds like a significant alteration - so in my mind the rules would definitely apply.
As fr Tesco...call them and ask. Nobody is going to give you a better answer than themselves.