New build properties

The maximum we will currently consider lending on new build properties is:

• Houses and Bungalows - 90%
• Flats and Maisonettes - 85%
• Second Home/Holiday Homes – 75%

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 refurbished 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.
• Properties built within the last 10 years must be subject to one of the following building control and monitoring requirements: 
  - Building Standards Indemnity Scheme from a warranty provider accepted by TSB.
• Professional consultant monitored build is only acceptable in the following scenarios:
  - A single property (either self-built or otherwise) where construction is monitored by a consultant employed directly by the customer.
  - A property built by a self-build group where construction is monitored by a consultant employed by that self-build group.
• Where the build has been supervised by a professional consultant, the individual concerned must satisfy the following criteria:
  - Be in private practice.
  - Hold an acceptable qualification as above.
  - Have adequate experience.*
  - Monitor construction from its commencement.
  - Agree to issue certificates in the form required by us.
  - At the time the certificate of practical completion is issued, the consultant must have professional indemnity insurance in force for each claim for the greater of either:
  > the value of the property once completed, or
  > £250,000 if employed directly by the borrower or, in any other case, £500,000.
  
  *e.g.15 properties within last 3 years. Obvious experience over several years, even though not matching the quoted example may also be considered acceptable.

Retrospective new build warranties are not acceptable.

Leasehold new build properties must have 123 years unexpired lease at the time of mortgage commencement. 

Leasehold Reform (Ground Rent) Act 2022

Ground rents on New Build Leasehold properties since 30th June 2022 are subject to meeting Government reform rules being that the ground rent must not be greater than a peppercorn amount per year (Cannot be greater than £1 annually) for it to meet our criteria to lend on the property.

TSB will not lend on New Build properties where the lease was created after the 30^th June 2022 and the ground rent is higher than a peppercorn.

New build mortgage offer

• New build mortgage offers are valid for 180 days from the first offer date.
• New build mortgage offers are eligible for an extension of either 28 or 180 days if the property doesn’t complete in time.
• 180-day extension is subject to a successful re-valuation, credit search and affordability checks.
• The latest we can process the mortgage offer extension is 14 days after the mortgage offer expiry. If the extension deadline is not met, a new application must be processed and submitted as new business.
• To request an extension, please complete the New build offer extension form.
• If the case is not proceeding, please confirm using the New build offer extension form and our processing team will cancel the case. (Please be advised that once a case is cancelled, it cannot be reinstated).