Structural warranty

[KTB]

This has been asked before in other areas of the site, but can anyone definitively answer at what stage we will need to purchase a structural warranty if we have the SER registration - Certificate of design. Can we purchase one later for selling purposes, if required? Or even do without? Confused.

[nod]

You can do without or purchase a professional certificate at half the price 

Or purchase one retrospective should you decide to sell

As I’ve said on numerous occasions 

No such thing as a forever home 

[markharro]

I am considering what I need too. I have enquired with my architect on whether he can provide a certificate but he has asked me what I need and I dont know what to tell him,. I know what I need the cert to provide me and that is access to mainstream lenders to re-mortgage after the build is over. I saw a ref on another thread on the form to "My build was inspected by an architect whom issued architects certificates PCCs which are accepted by the main lenders. "  my architect says he doesnt know what PCC stands for. Can anyone assist and for the avoidance of doubt I am in Scotland? thanks

[Ralph]

On 15/09/2022 at 19:02, markharro said:

am considering what I need too. I have enquired with my architect on whether he can provide a certificate but he has asked me what I need and I dont know what to tell him,. I know what I need the cert to provide me and that is access to mainstream lenders to re-mortgage after the build is over. I saw a ref on another thread on the form to "My build was inspected by an architect whom issued architects certificates PCCs which are accepted by the main lenders. "  my architect says he doesnt know what PCC stands for. Can anyone assist and for the avoidance of doubt I am in Scotland? thanks

My central contractor went tits up so we have no structural warranty. I'm looking at this now as we will soon be moving away from our build mortgage.  My understanding is this:

Some lenders seem to want a structural warranty, some are happy with a PCC, professional consultants certificate, which is basically the new name for what used to be called an architect’s certificate. My architect and apparently quite a few others stopped doing them because the liability became a pain in the hoop.   

The PCC has no warranty insurance like a structural warranty would have. It's basically a professional consultant (one one approved and listed in the UK Finance Mortgage Lenders Handbook) telling the lenders that they checked on the design and build and are happy everything is as it should be. Normally this would involve inspections at various stages. I think a PCC is only valid for 6 years whereas a structural warranty is valid for 10, after 10 years you don't need either. 

You can get a completed house warranty which is essentially a retrospective structural warranty but more expensive due to the liability from lack of stage inspections. 

 

I'm going to wait and see what my lenders will accept and make a decision then (some don't even ask for them) For me a PCC was about £3K and a retrospective warranty was over £7k 

 

I think a structural warranty is a waste of money unless the lender insists on one because they are difficult to claim on. some will probably disagree. 

[MJamesW]

PCC stands for Professional Consultants Certificate and is basically the same as the old Architect Cert but when UK Finance took over it had the name change. Most High Street Lenders so accept them I don't think HSBC do but the rest to and certainly the Lloyds group does which is the biggest player in the new home mortgage market 

 

The cheapest way is to take out the warranty or PCC before you start so inspections can be carried out which reduces the risk for the insurer. There are High Street lenders that do not accept retrospective cover such as TSB.  

 

In my opinion it is down to the individuals attitude to risk and situation and what your lender requires. Also if you are selling the property then you will need a warranty from the start for the potential buyer to get a 'decision in principle' from the lender 

 

 

Rules are more or less the same in Scotland with warranties, there is a slight difference with the SER they dont need structural reports for the underwriting 

[Conor]

When we got our mortgage in August, neither Bank of Ireland or Virgin required anything other than building control certificate. Their rates were competitive so that's what we went with. Worth checking with your broker before you go down expensive certificate or insurance routes.

 

Different ball game if wanting to sell in the first 2-5 years or so 

[Joanna Susskind]

On 04/01/2023 at 10:04, Conor said:

When we got our mortgage in August, neither Bank of Ireland or Virgin required anything other than building control certificate. Their rates were competitive so that's what we went with. Worth checking with your broker before you go down expensive certificate or insurance routes.

 

Different ball game if wanting to sell in the first 2-5 years or so 

Hey Conor

 

This is great to hear! We are based in Scotland and have finished our build a few years ago. We have completion and habitation, just no warranty as it was built during lockdown… Wonder if Virgin would help us remortgage? I don’t see anything about self builds on their website… keen to know more, thanks!

[Conor]

13 hours ago, Joanna Susskind said:

Hey Conor

 

This is great to hear! We are based in Scotland and have finished our build a few years ago. We have completion and habitation, just no warranty as it was built during lockdown… Wonder if Virgin would help us remortgage? I don’t see anything about self builds on their website… keen to know more, thanks!

I'd say so, if they are still offering the product. Go through a broker (we used mortgage shop) and give them your criteria and needs. Once you hit the two year mark after signoff you then access a whole load more products. A two year with virgin now is probably your best bet, then remortgage (at a lower rate) once you pass the two year mark.