Hello. We are very close to exchange (days away) on a new build property. The property is not in a development (countryside house) and comes with a 10 year warranty.
The warranty provided gives a value that it covers and the value is £125k less than the purchase price. The mortgage lender (NatWest) has said they won't accept this as the value should match the purchase price and they won't lend unless the seller (the builder) increases the warranty cover.
His argument is that the warranty is for the structure of the house only and our own buildings and contents insurance covers the rest, in a worst case scenario that something would be wrong with the house.
His solicitor has now said that he will not pay the extra cost to increase the cover. We can't get our mortgage funds through unless someone pays it.
Has anyone experienced this scenario?
My thoughts are that it's his cost in selling a new build house with a warranty. From what I understand most (if not all) lenders take this same position and so he will already be aware and is chancing his arm. Unless he had a cash buyer, any purchasers lender would insist on this and so the house is not mortgageable without adequate warranty.
At the same time, he's been very good to us. We upgraded lots of the finishes and have yet to pay him a penny. He's given us a key to allow us to move things in already to take the pressure of moving day, etc.
My solicitor has responded that we will cover half the extra cost so waiting on his reply.
We aren't legally bound to proceed so I could be an asshole and say that we will walk away if he doesn't pay it but I don't want to be an asshole and ultimately if we have to pay it to complete we will.
Anyone?