• Section 38 For New Build House

    By Guest on 06th May 2014

    Can you please tell me if all or most mortgage companies require a new build to have a Section 38 before we can complete. The builder says we are the only purchaser that cannot complete as our Mortgage company has to have a section 38. It is a national mortgage company. It turns out the builder does not have a section 38 in place. Although we are to own two carpark spaces they are in a communal area not right outside the house. They say they have got a legal document in place to cover the new residents but our mortgage company will not accept this.

  • 1 Answers

    By Guest on 26/07/2014

    The parking spaces by the sound of it are a separate issue. It sounds like you will be registered as the legal owner of the spaces. The issue seems to be that the roads serving the property are intended to be adopted by the local authority as public highways but aren't yet. This is perfectly normal but most if not all major mortgage lenders do insist that a s38 adoption agreement (between developer and council) is in place. They won't ask to see it, they will assume that the conveyancer has checked it as this is part of the lender's standard instructions to conveyancers. Obviously if the solicitors for other plot purchasers haven't reported the lack of a s38 agreement the lenders will be none the wiser but the conveyancers are negligent.

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