Mortgage lenders are introducing more checks to scrutinise the real price of all new properties from September 2008 by the use of a “disclosure of incentives form” for completion by the developer. The purpose of this form is to ensure that any discounts or other offers e.g. cashbacks and costs or stamp duty contributions are disclosed and taken into account on valuation.
Mark Sadler, partner in the conveyancing department commented that this is further evidence of the tightening in lending criteria, controlled in part by mortgage valuations.
A copy of the form can be viewed on the Council of Mortgage Lenders website http://www.cml.org.uk/cml/handbook/form