Acceptable incentives for new builds

Acceptable builders incentives: 

• For houses and bungalows: the maximum allowable builder's incentive is 5%. If the total value of incentives exceeds 5% of the purchase price, the difference should be deducted from the purchase price and LTV calculated on the lower figure 
• For flats and maisonettes: where the builder's incentive is cash back or deposit paid, this is not acceptable unless the full incentive is deducted from the purchase price to calculate the loan to value. Any other incentives must not exceed 5% 


Acceptable warranties for new builds

Acceptable new build warranties are: 

• NHBC 
• Premier Guarantee 
• LABC 
• Building Life Plans (BLP) 
• Build-Zone 
• Checkmate/Castle 10 (nb. where out buildings such as a detached garage are also being constructed an endorsement to include these in cover is required) 
• Build Assure 
• Global Home Warranties 
• The Q Policy for residential properties 
• The Q Policy for bespoke properties 
• Protek 
• Advantage (Insurer: Elite Insurance Company). (There must be no more than 10 units in any continuous structure) 
• International Construction Warranties (ICW) 
• Ark Residential New Build Latent Defects Insurance. (Where a detached garage/outbuilding has been constructed at the same time as the main building the policy must include an endorsement confirming cover for the detached garage/out building) 
• Aedis (nb. There must be no more than 20 units in the structure) 
• One Guarantee 
• CRL new build 10-year structural defects insurance policy for residential property** 

** New properties where the insurer is International General Insurance Company (UK) Ltd and Ark have signed the final certificate. Please see the final paragraph on the final certificate which will confirm Ark details and the fact they are signing on behalf of the insurers: Acceptable. 

Modern Methods of Construction (MMC) 


Many different types of construction are now being designed and developed employing off-site manufacture. These often have a timber or a light gauge steel frame, with a variety of claddings. These properties are acceptable once we have a satisfactory report from the valuer confirming their saleability and demand. 
  


Ideally, the property should be approved under (BOPAS) Buildoffsite Property Assurance Scheme which means that it has passed a 60 year durability assessment and has a 12 year structural warranty. 
 


Acceptability will be reviewed by the Group’s valuers based upon: 
 

• Planning/Building Regulation compliance
  or Professional Consultants Certificate in standard CML format 
• Eligibility for buildings insurance cover on normal terms 
• Acceptability to other mainstream lenders 
• 60 years minimum design life assessment tested by a British  accredited body (i.e. BBA or BRE) 
• Satisfactory construction standards, site and valuation. 

   

Valuation

A standard valuation must be completed on all BTL properties.

The only acceptable valuation type is an internal inspection by a panel valuer. Transcripts are not permitted.

 

Reports and retentions

Where a valuer requests specialist reports, such reports will be referred to the valuer for analysis and comment prior to any offer being issued. No funds will be released until the property has been confirmed as suitable for lending. 

Accord BTL will not hold any retentions for works to be completed. The property must be suitable for immediate letting at the time of the valuers inspection. 

Minimum property value

The minimum property valuation is £75,000 (in current condition). The property must be suitable for immediate letting at the time of valuation.

The minimum property valuation for new build properties is £100,000.

Rental valuation

The rental value figure must be on an unfurnished gross monthly basis on an Assured Short hold tenancy for 6 months or on a proper tenancy if the rent is over £100,000 pa (equivalents in Scotland and Wales).  There must be good demand for rental property in the area concerned.