I’ve got conditional pre approval on a loan with HSBC.
The property i’d like to purchase (i’ve got my offer accepted) has had modifications done to the house that have not been passed by council.
the modifications were done 10 years ago; A plan was accepted to extend the original house. The owner builder has done this but instead of it being one house he has put a courtyard between the old place and the new addition. He also put a kitchen in the new addition. This has effectively turned the single house into 2×2 garden units.The issue is that my conveyancer has told me she has to sign a stat dec for the HSBC loan stating that the propery adhears to local government laws which she of course cant do.
Does anyone know if this stat dec has to be done for a HSBC loan because I dont want to pay for HSBC to do a valuation on the property if i know there is no chance I can get this loan.As backup i’ve applied for a loan from the Commonwealth bank.
Thanks for any help,
Mark
Hi MRK
I can’t answer your question re-exact declarations that hsbc finance requires, but I would like to CAUTION you on buying a property with modifications not approved by council. Unless you are planning to demolish and develop the site, you are taking on a problem that may be very expensive. They could make you remove the back end of the property!!!
If they approved a loan once, they will again for an “honest” house. Also, think about your credibility with the bank if you go signing stat decs for houses with no approval, do you want one loan or 100?
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phone 0412 437 582Thanks for your reply Dr.X,
I will eventually demolish the place but will keep it as is for a couple of years (if i end up purchasing the place).
Myself or my convayencer are not going to sign a stat dec. I was asking if it was the normal thing with a HSBC loan as my mortgage broker has never heard of it. My convayencer tells me other lenders dont require a stat dec regarding the legality of the property.
I have never heard of this either – just use a different lender.
Cheers
Stu
With HSBC they can either go through their normal channels when doing the loan or they can use a solicitor. If they use the solicitor they require a stat dec from the purchases declaring that the property adhears to local laws (so i’m told by my conveyancer).
I would only know if i need a stat dec 3 weeks after i pay the deposit etc.
My mortgage broker had never heard of such thing before so he asked my conveyance and she explained it to him. He went back to HSBC and they told him she was correct.
To cut a long story shorty, the property sold close on 5:30pm today to someone else. I was ready to exchange contracts tommorow morning when the HSBC valuation came through.
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