A 'New Build' is defined as a property that hasn't been purchased (even if it's been occupied) within two years of being newly constructed, converted or refurbished. This includes properties being bought off plan.

Offers are valid for 180 days, however, New Build offers will now be automatically extended by a further 45 days when the offer reaches 5 months. This is subject to valuation confirmation and will be communicated to you and the solicitor if successful.

Builder deposit/cashbacks

Criteria

• Acceptable on standard New Build cases, including Shared Ownership.
• Not acceptable on equity share loans.
• Cashbacks on properties that have recently been (or are in the process of being) upgraded or converted into flats by a developer, are treated as a Vendor Cashback, except if they're developing several properties on several sites at the same time.

LTV

• If the builder deposit/cashback is less than or equal to 5% of the purchase price, we base the LTV and products on the lower of the full purchase price/value.
• If the builder deposit/cashback is more than 5% of the purchase price, we deduct the amount above 5% from the purchase price and base the LTV and products on the lower of the reduced purchase price/value.
• The value of any other incentives must also be added to the builder deposit/cashback to determine whether the total amount is greater than 5%.
• Vendor cashback - we deduct the total value of incentives from the purchase price and base the LTV and products on the lower of the reduced purchase price/value.

Builder incentives

Includes: legal fees, stamp duty, soft furnishings, white goods, estate agent fees, Homemover schemes (e.g. Barratt Home Movemaker scheme, Persimmon Home Change scheme, Taylor Wimpey Easymover scheme)

Criteria

• On standard New Build and equity loan cases - where the incentives offered by a builder aren't deposit or cashback, this will be treated as builder's incentives.
• Your client must provide a minimum 5% deposit from their own resources.
• The value of the incentive must be transparently declared on a UK Finance Disclosure of Incentives Form.

LTV

• If the incentive value is less than or equal to 5% of the purchase price, we base the LTV and products on the lower of the full purchase price/value.
• If the incentive value is more than 5% of the purchase price, we deduct the amount above 5% from the purchase price and base the LTV and products on the lower of the reduced purchase price/value.
• The value of any builder deposit/cashback must also be added to the other incentives to determine whether the total amount is greater than 5%.

If the property is a new build, we need to see a building guarantee. Building guarantees we accept include:

• NHBC
• LABC
• Build-zone
• Premier Guarantee
• Architect/Surveyor's Certificate (the architect/surveyor needs minimum qualifications and indemnity cover which the solicitor will check in accordance with the CML handbook)
• Advantage - There must be no more than ten units in any continuous structure
• CRL new build 10 year structural defects insurance policy for residential property.
  • Specifically, new properties where Ark have underwritten the policy. Please see the final paragraph on the final certificate which will confirm Ark details.
  • Second hand properties over two years old.

We won't accept the guarantees in the following circumstances:

• On new build properties underwritten by Alpha.
• On second hand properties being sold by first or subsequent owner and properties under two years old, with the warranty underwritten by Alpha.

If another building guarantee has been issued that's not listed above, please contact the New Build support team.

• Minimum acceptable lease term (doesn’t apply to Shared Ownership):
• 125 years for flats
• 250 years for houses
• Maximum starting ground rent on all New Build properties with a leasehold tenure is limited to 0.1% of the property value.
• Ground rent must always be reasonable during the lease term. For example, ground rent escalation should be linked to Retail Price Index or similar, and unreasonable multipliers of ground rent will not be permitted, e.g. doubling every 5, 10 or 15 years.

We instruct our valuers to value all new properties (flats, houses and maisonettes) on an 'as new' basis.

New properties may include a New Build premium. A New Build premium is the additional value in a property that diminishes once the property is occupied.

We've launched a pilot designed to speed up the timescales taken to carry out New Build valuations. We’ll use information from earlier site visits to value New Build houses which have suitable warranties and are of traditional construction, without the need to visit the site.

You'll only be able to escalate a New Build case if:

• All documentation requested has been uploaded to the application and
• We've had the application for 14 working days or more and/or
• Imminent exchange/completion is due (i.e. within the next 10 days)

When you need to escalate a case, call 0800 30 20 11 (option 4, then option 1, then option 3 and then option 1).