New Build

Leeds Building Society improves new-build criteria



Leeds Building Society has announced changes to its new-build lending criteria.

The lender has increased the loan-to-value on new homes up to 90% on houses and 85% on flats, as well as introducing specific criteria to support modern methods of construction.

The building society has also created a dedicated new-build underwriting team and ensured that offers and valuations are valid for six months.

“There’s a widely-shared view that increasing housing supply is an absolute priority for the UK, although opinions differ as to how this can be achieved,” said Martese Carton, head of intermediary distribution at Leeds Building Society.

“We’re doing what we can as a lender to support developers by strengthening our new-build proposition, such as broadening the range of warranties we accept on new-build properties.”

The society will now accept warranties on new properties and conversions built in the last 10 years from the following:

  • Advantage HCI
  • Build Assure
  • Building Life Plan
  • Build Zone
  • Castle 10 (sometimes called Checkmate)
  • CRL 10-Year Structural Defects Insurance Policy
  • Global Home Warranties 10-Year Structural Defects Insurance Policy
  • National House Building Council
  • International Construction Warranties
  • LABC
  • Premier
  • Protek
  • Q Policy
  • Zurich Municipal Scheme (for cover issued up to 30th September 2009)

 

“The society reviewed this position after developers raised concerns about warranty costs so we’ve worked with our surveying partner, Countrywide Valuation Services, to identify which warranty schemes provide appropriate consumer protection,” Martese added.

“This means developers can consider alternative warranty schemes without compromising the ability of purchasers to secure a mortgage.

“We hope the move demonstrates our continued commitment to supporting the new-build sector.”


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