Good'ol structural defect warranties

[Highlandhome]

So after 2 years of trying we finally had an offer accepted on our dream home. Sadly for us it turns out it is only a couple of years old and wasn't built with the view of selling on any time soon (no architects certificate or structural warranty insurance) so can't mortgage against it.

 

I believe retrospective warranties are available but I'm really struggling to find any lenders that will accept it anyway.

 

I was hoping as the current owner / builder was applying for a warranty it wouldn't be retrospective by the time it gets transferred to me as he built it and so has all relevant building control certs etc.

 

Based on the above does anyone have any experience here and can recommend a mortgage lender who accepts retrospective warranties or indemnity insurance as another option?

 

Thanks in advance

[SuperJohnG]

A warranty is a warranty I'd have thought. More expensive as its retrospective, but if granted then its a tick box exercise surely for the lender, provided its one they accept? 

[Highlandhome]

Sadly not John, most lenders specifically state they do not accept retrospective warranties but I'm struggling to understand this. There must be a raft of self builders unable to sell their homes for 10 years if that's the case. Why do retrospective warranties exist as they aren't worth the paper they're written on and don't even satisfy lenders these days.

[SteamyTea]

12 hours ago, Highlandhome said:

Why do retrospective warranties exist as they aren't worth the paper they're written on and don't even satisfy lenders these days.

For similar reasons that higher education sells degrees that do not improve employment prospects or earnings.

The market demands them, so they are sold.

[Ajn]

27 minutes ago, SteamyTea said:

they aren't worth the paper they're written on

We needed a warranty to get the build loan. While not retrospective it's still not worth the paper it is written on.

[Mjb]

So I built my house without a warranty thinking on the basis if we wanted to sell we could buy a retrospective warranty. I spoke to this company at the NEC this year and they said they could issue a warranty for my self build which lasts for 10 years from completion date. They claim the warranty is accepted by a long list of mortgage providers and the list of providers is on their FAQ page. 

 

https://www.architectscertificate.co.uk/faq/

[Kelvin]

On 08/08/2022 at 23:11, Highlandhome said:

Sadly not John, most lenders specifically state they do not accept retrospective warranties but I'm struggling to understand this. There must be a raft of self builders unable to sell their homes for 10 years if that's the case. Why do retrospective warranties exist as they aren't worth the paper they're written on and don't even satisfy lenders these days.

 

There’s a market for them. The warranty providers don’t care if the lenders don’t accept them. Lenders are also becoming increasingly reluctant to take risks. When we bought our last house there were no issues with needing to take out insurance indemnities. Seven years later when we sold our buyer’s lender wanted indemnities for all sorts of stuff. Our conveyancer said there had been a real shift during COVID. 
 

 We weren’t going to bother with one but because of this problem we will. We don’t plan on selling as it’s our last house but you never how life goes.