Mortgage without NHBC Cover

[kashn]

I bought a new build house at auction where the builder went bust before completion and so has no NHBC cover. I should have the project finished in the next few weeks when it should hopefully get a buildings regs certificate. Does anyone know of a financial institution that will mortgage this property on a 'buy-to-let' purposes?

Thanks in advance

[kashn]

nudge..

No mortgage advisors wanting business?

[VX Foxy]

NHBC is mostly for the builders benefit. I can't see why it should make any difference to the mortgage.

[scotal]

VX Foxy said:

NHBC is mostly for the builders benefit. I can't see why it should make any difference to the mortgage.

Its an insurance policy. The lenders like to see it becuase technically speaking the house has been built within guidelines, and there is recourse during the first 10 years of its life.

[VX Foxy]

...an insurance policy for the builder.

scotal said:

there is recourse during the first 10 years of its life.

If your house falls down, or has been inadverantly built on a frozen lake they may help.

I had a Beazer house in the mid 90s - the build quality was shocking. There was visible curvature to the gable wall. NHBC bloke said "yeah, it's bad workmanship but what are you going to do about it!". Sorry...going off topic...

[Barton]

The last time I cam across this situation, we had to have an architect inspect the building and issue a certificate so it was covered on his indemnity, if you can find someone prepared to do this I am quite happy to look at options for you.

[TomBoo]

If the property is a new build All Lenders will insist on 10 year cover.

If you need advice PM me with brief details and I'll send you ours.

And yes, once it is finished we can do you a remortgage on a BTL basis providing you have good Credit History and all your figures stack up.

Tom

Edited by TomBoo on Thursday 28th January 15:36

[hamski]

Lenders will either insist on 10 year cover or that the property is architect supervised. Although the architect would normally sign off the build in stages, a solicitor dealing with a mortgage will normally only need the final inspection certificate.

Bear in mind that some lenders will treat your ownership of the property as the date it is signed off, and you may need to wait 6 mths to effect a remortgage.

[DavidO2010]

check out BLP Insurance if you want a warranty on the property. If you do decide to sell the property, you'll need this.

[sussexjob]

NHBC cover in my personal advice is not worth the paper it's written on, firstly they will wriggle about not attending the site then wriggle on get out clauses..did you know they do not cover flat roofs-not very good when you just purchased a flat in a block ?
Please speak up if there is anyone who has had a good experiance ???

[renmure]

sussexjob said:

Please speak up if there is anyone who has had a good experiance ???

Appreciate that I seem to be in a minority here but my very recent experience was the opposite.

I bought a new build / converted townhouse in central Aberdeen 3 yrs ago and in November noticed that the flooring seemed to sag at the wall in the hallway. A joiner took a look and shocked my by saying that it looked like the floor joists had dry rot. I got one of the Rot specialists firms to take a look and they agreed and estimated around £6k to remedy but said it might be more once they lifted the whole floor area and could properly assess the extent.

A call to NHBC had one of their local inspector/assessors around within the week who confirmed it was dry rot and agreed they would be paying for repairs. A couple of emails back and forth to NHBC over the next few days brought confirmation that they would foot the initial bill and agreed that the full extent of any claim wouldn't be known till more flooring was lifted and joists assessed but that they would foot that too

By the end of that week it was confirmed that almost 80% of the downstairs joists needed cut out/treated and the whole floor and the bottom part of some internal walls needed replaced. The work took 3 weeks, and including an allowance for alternative accomodation, cleaning, redecoration etc the final bill was circa £23k which was paid without any hassle.

I found the NHBC really easy to deal with, very cooperative and particularly helpful.

[skeltonmfc]

Sorry to jump on this post but im after some similar advice. Just coming to the end of a Church conversion which i undertook myself, its a gradeII stone built church converted into a house for myself and my family and we have done it with a self build mortgage. Now we are close to the end i started applying for a mortgage and they have asked for structural warranty which i don't have as i was under the impression it was for new builds. I have had an architect involved to sign off all the stage payments and give me a sign of certificate and i have had building control to site many times and they are more then happy. Is it possible to get a mortgage without the warranty, The LV is very low i need a mortgage for 180k and the church is valued at 600-700k any advice would be much appreciated.

[Sarnie]

skeltonmfc said:

Sorry to jump on this post but im after some similar advice. Just coming to the end of a Church conversion which i undertook myself, its a gradeII stone built church converted into a house for myself and my family and we have done it with a self build mortgage. Now we are close to the end i started applying for a mortgage and they have asked for structural warranty which i don't have as i was under the impression it was for new builds. I have had an architect involved to sign off all the stage payments and give me a sign of certificate and i have had building control to site many times and they are more then happy. Is it possible to get a mortgage without the warranty, The LV is very low i need a mortgage for 180k and the church is valued at 600-700k any advice would be much appreciated.

Lenders will classify this as a New Build due to the recent conversion....thus, you will need a warranty..........I can't see any lender issuing funds without a warranty...............