We’ll lend on a set limit of properties in each new build development. Limits will vary according to each individual development (including those that involve the conversion of usage from office to residential). This doesn’t apply to single properties that have been converted into flats.

Limits must not exceed 25% and will be set and monitored by our Valuation Panel Manager.

Find out about our current exposure levels and how many units are left on any site under development using LiveTALK.

We’ll only lend on new builds and renovations where one of the following structural warranties are in place and have 10 years or more on the warranty:

·         NHBC

·         Trenwick International

·         Premier Guarantee *

·         Build Zone & Buildcare

·         Building Lifeplans Limited (BLP, Allianz Guarantee )

·         Ward Cole (12 year structural warranty)

·         LABC (New Home Warranty – not self build)

·         Castle 10 ( Checkmate)

·         Build Assure (New Home Structural Defects Insurance)

·         Global Home Warranties

·         The Q Policy

·         Protek New Home Warranty

·         Aedis Group Homeproof Structural Warranties

·         Advantage Warranties

·         International Construction Warranties

·         One Guarantee Ltd

·         ABC+ Warranty & Architects Certificate

* Premier Guarantee Warranties for flats will be referred to us by the acting solicitor – check the amount of cover at least equals the reinstatement figure on the valuation report.

Absence of structural warranties

Structural warranties issued retrospectively cannot be accepted.

If the building does not have a valid warranty, we’ll accept a Professional Consultant Certificate from a suitably qualified professional provided in the format detailed in the CML Lenders’ Handbook. Our solicitor will confirm that the requirements are met and that the certificate was issued before the exchange of contracts.

We cannot accept architects’ certificates that do not have the benefit of the Professional Consultant Certificate.

Modern methods of construction

We’ll consider lending on properties that are constructed of sustainable, non-traditional new build construction systems, as long as they are accredited by the Build Offsite Property Assurance Scheme (BOPAS) and have an acceptable structural warranty.

Properties that are constructed using modern methods of construction but aren’t covered by the BOPAS will be considered on their individual merits by the valuer.

Assisted move

Assisted move is typically where a housebuilder will pay the fees for two local estate agents to market the applicant’s existing property for a quick sale so that they can move ahead with their purchase of the new build property.

This is not classed as a scheme but as an incentive, so the applicant can use a scheme to purchase their new build property. This is NOT classed as a scheme but as an incentive so please refer to our 'incentives' section to make sure it is acceptable.

Part-exchange

A part-exchange is where a housebuilder buys the property off the applicant and then re-sells it on the open market. It means that the applicant can sell their existing property quickly so that they can proceed with the purchase of their new build property.

Leasehold

Each case is taken on its own merits so there is no ‘hard and fast’ rule. Generally speaking, if the leasehold doubles every 10 years or starts at a high point then we won’t lend. If it starts low and has reasonable review increases and periods then we may consider.

To help us to come to a decision, please give us the details of the ground rent and service charge. Solicitors have a duty of care to ensure that any leasehold agreement is not onerous for the customer.

We accept builders’ financial incentives on new build properties up to 15% of a property’s purchase price.

The purchase price won’t be adjusted for incentives unless the total amount of incentives is more than 5% of the price, in which case they’ll be deducted and lending will be based on the reduced purchase price (unless the property valuation is lower). For example:

Portable and proportionate incentives acceptable in 5% allowance

Incentives such as carpets and curtains, along with financial incentives such as support with up-front costs such as stamp duty, legal fees or cashback or enhanced part exchange terms can be accepted in the 5% allowance.

Non-standard items that do not need to be included in 5% allowance

Incentives such as an upgraded kitchen or integrated appliances can be accepted as an incentive but do not need to be included in the 5% allowance. However, they do need to be listed on the UK Finance Disclosure Form. The costs of these items doesn’t need to be included.

Any item that’s provided as part of the standard specification for a property shouldn’t be listed on the UK Finance Disclosure Form unless an upgrade on the standard specification is offered free of charge.

Here’s a quick guide to which type of incentives need to be included on the form, if they need to be included as part of the Value of Incentives calculation and the rationale.

• mortgage offers are valid for 6 months, but a free extension can be requested within 30 days of the expiry
• if granted, we’ll extend a customer’s offer letter by 3 months on completion of a successful credit search (no additional footprint will be made) and a free refreshed property valuation
• the original deal will still be valid, which means that if there is a delay in the completion of the property the customer won’t miss out on their chosen deal, which would be especially beneficial if rates rise. The customer can also choose a new deal
• a customer can apply for a maximum of two offer extensions resulting in a total offer extension period of 6 months. The 3-month extension will apply from the original date the offer expired
• to apply for an offer extension please complete the new build offer extension form