Help! About to lose warranty - build taking too long. Advice/suggestions needed.

[Paene Finitur]

A started my build just over three years ago and took out a warranty with LABC. I never expected it to take so long but what with Covid and a pretty incompetent (and often absent) project manager, it has dragged on. I parted company with the PM in July due to cost and time overrun and have been trying to manage the build and a day job at the same time. Even with the increased stress, we've made a lot of progress.

 

However, in September, LABC contacted me to tell me that as it had been over three years since I took out the policy, unless the warranty was fully signed off by 30th November, they would consider it null and void.

 

I have been frantically running around trying to get part p, part g, building control, and all sorts of other actions completed. I'm hoping to get everything submitted in time but most of it is outside my control in that I am hassling/nagging contractors to provide me with documentation for work that they've done. Some have been super helpful but most are so swamped they just keep putting it off.

 

The house is ready to live in and we are planning to move in just over a week, but when I phoned LABC today, they were absolutely immovable about the date. I've provided 80% of what they wanted, but they told me they wouldn't even consider an application for a new warranty, if this one expires!

 

It seems insane to me as the property is almost there and it's just documentation that's holding things up. Nevertheless, I have a large mortgage on the property and the worry of losing it all is making me sick.

 

Has anyone been through this and have any constructive ideas for a plan b if the warranty is canned?

 

Thanks in advance.

[PeterW]

 

A sharp letter followed by the Insurance Ombudsman would be my starting point. Basically, you’ve been sold an insurance product and they are trying (I am assuming) to change the terms by adding a clause about how long a build should take.

 

Write back and ask in writing where they say there is a maximum time to complete, and then if there isn’t they have no case. They can change terms but only by mutual agreement - there will be cancellation and other items in the small print but this sounds like an insurer playing games.

 

 

[Jilly]

Can you list what is outstanding? I called Building Control when we were near and they seemed as keen to sign off as we were. 

 

People might be able to give pointers. Was the mortgage conditional on the warranty? Can you pin them down to specifics? I assume it's a structural warranty and the structural elements were finished and signed off a while ago? I would go with the firing off letters to Radio 4, your MP and the ombudsman. The threat of adverse publicity might make them back down. I'm assuming you might only need a month or two's extension?

Edited November 18, 2022 by Jilly

[Paene Finitur]

Many thanks for your responses. The building control guy is nice but very thorough. He needs part g (water usage), gas competence and part p. He rejected the part p I sent in because the electrician marked the basement as incomplete. To be fair, the basement has not been completed yet but I had asked the electricians to complete the electrics to the point where they were safe and would pass part p. Annoying. They are coming in Monday to address that.

 

The LABC warranty guy is equally nice and just as thorough though he has a tendency to keep adding things in. On his last visit, he added that the smoke alarms weren't working in unison and a juliet balcony hadn't been fitted. Fair enough; I've had the electricians address the smoke alarms and I'm heading down to pick up the Juliet balcony on Sunday. It will be fitted on Monday. Aside from that he also wants gas competence, part p and building control sign-off. It's all doable, but it only needs either of them to call out something they're not happy with at the last minute to throw things into chaos.

 

The problem with LABC is that they are split between building surveyors and insurance and while the surveyors might be pragmatic, the insurers are being intransigent. They did actually write to me a while ago suggesting that they might want more money for the warranty since prices had shot up. They certainly had, but was that my fault? I suspect they might be "shaking the tree" a bit now that the economy is retracting, to get rid of even the slightest risk and focus only on the most risk free warranties.

 

I checked the terms and conditions an sure enough, there is a clause allowing them to cancel after three years if incomplete (without any refund I might add), though given that we are moving in on 28th and it's perfectly habitable, that seems a bit much to me.

 

It's the implications that worry me, because effectively there is no plan b and, yes, I believe that the mortgage provider will want a structural warranty in place, which leaves me, if/when they find out that it's been voided, in a position where I will likely lose my mortgage and because I don't have a warranty, I won't be able to get another. 

[Temp]

Ours found a few minor things but signed us off when we promised to do them immediately. One window needed a 

 

If any electrics not 100% finished ask electrician to make them safe and ideally get him to write a letter  letter confirming they have been made safe. I still have missing wall lights 15 years later 😞

 

Part P will be mostly about the level access entrance and width of doors between their and the WC. He might check dimensions of the WC if it's a bit small.

 

Our BC0 checked that every pane of glass that needed to be toughened glass was marked in the corner with the BS standard.

 

He also wanted to witness the drains being pressure tested. Kits for that are available at Screwfix/Toolstation etc. Remember to seal any unconnected pipes and put water in traps.

[Temp]

If you have any wood burners...

 

Hhave you got air bricks or other vents? 

 

He may also want to see the rating plate for the Woodburner. There is an example in the relevant Approved Document I think.

 

[Triassic]

I asked for a list of outstanding items. He sent me a list. I did them and asked for the sign off certificate. He then found six more things , it turned out he had a checklist he was working through. As we were close to the deadline he had to give me six month extension. We got our certificate yesterday.

[PeterW]

7 hours ago, Temp said:

Part P will be mostly about the level access entrance and width of doors between their and the WC

That is Part M.. Part P is electrical.

[Temp]

2 hours ago, PeterW said:

That is Part M.. Part P is electrical

 

Must be all the driving I'm doing. Son broke his ankle do I'm having to drive four and a half hours a day.

[Paene Finitur]

Thanks, I asked for a comprehensive list from both BC and LABC(Warranty), but it didn't stop the Warranty guy adding items when he made his final items. Hopefully, we've got all of them covered but the BC guy is coming on Wednesday for his final inspection which gives me 7 days to correct anything he raises, get his sign off, get it to Warranty Man and get Warranty sign off - far closer than I'd like.

 

And like I say, I wouldn't mind any of this if it they were not so intransigent about the deadline.

[Jilly]

Re the gas, I had to submit a Landlords/Homeowners Safety cert. Re the water usage, I paid an on line Co £75 which was a waste of money, as I think there are free online calculators which looked the same. It ticked the box any way. 

 

If you have the mortgage in place and keep paying and you aren't asking for more money, I'm surprised if that would be an issue. Not everybody bothers with a warranty. Have you sorted out normal house insurance yet? I got mine sorted before the BC certs were finalised. 

Edited November 19, 2022 by Jilly

[Triassic]

1 hour ago, Jilly said:

Re the gas, I had to submit a Landlords/Homeowners Safety cert. Re the water usage, I paid an on line Co £75 which was a waste of money, as I think there are free online calculators which looked the same. It ticked the box any way. 

Most of the certificates can be done by yourself after a bit of research on line. Don’t forget to ask on here. 

[Paene Finitur]

Thanks for the replies which are really helpful, but what I really wanted to know is whether anyone had been in the position of having to get a retrospective warranty and/or any constructive ideas for a plan b if the warranty is canned?

 

I've got everything in place now (bar part p which I'm hoping to receive tomorrow from the electricians, who have been round today to deal with the basement), but the Building Inspector is making his final inspection on Wednesday and I'm worried that a curveball will leave me unable to get everything done for the warranty by 30th. The anxiety is getting to me big time!

Edited November 21, 2022 by Paene Finitur

[Paene Finitur]

On 19/11/2022 at 16:18, Jilly said:

If you have the mortgage in place and keep paying and you aren't asking for more money, I'm surprised if that would be an issue. Not everybody bothers with a warranty. Have you sorted out normal house insurance yet? I got mine sorted before the BC certs were finalised. 

Yes, the thought had occurred to me although (a) I'm worried that the Warranty Co will somehow inform the Mortgage Co and (b) it traps me in to that mortgage provider who's rate is pretty bad right now. Selling would be an issue too as it would narrow the market quite a bit. We're not planning to sell for another ten years but you never know.

[Jilly]

13 hours ago, Paene Finitur said:

The anxiety is getting to me big time!

Oh, the self building sleepless nights. Our brains play nasty little tricks. Are you certain new builds have to have a warranty to be mortgageable? Maybe speak to a broker to set your mind at rest (hopefully)

[Paene Finitur]

So, a bit of an update: The Building Control guy came round and had a good look on 23rd. Unfortunately, he wasn't able to pass it because the basement hadn't been tacked, so represented a fire hazard (from quite what, I don't know, but anyway) which was a bit of a blow. I then contacted the warranty company to beg for an extension. I got through not to my usual warranty surveyor but to his boss, who told me that (a) they didn't need building control sign off since we were building the property for ourselves rather than as a commercial developer and (b) the basement wasn't covered by the warranty anyway!

 

He asked that I send him the gas and part P certs and, pending one visit from my normal surveyor, they would complete the paperwork. The visit went OK and, though I've no paperwork yet from LABC, I have at least emails from the surveyors a few days prior to 30th stating that all has been satisfactorily completed. I don't feel I'm out of the woods yet, until I get a completion cert from them but I can at least concentrate on a few other things now.

 

Thanks everyone for your help, encouragement and great advice!

[Kelvin]

That’s great news. Well done. 

[Jilly]

Well done!

[CalvinHobbes]

On 02/12/2022 at 19:45, Paene Finitur said:

So, a bit of an update: The Building Control guy came round and had a good look on 23rd. Unfortunately, he wasn't able to pass it because the basement hadn't been tacked, so represented a fire hazard (from quite what, I don't know, but anyway) which was a bit of a blow. I then contacted the warranty company to beg for an extension. I got through not to my usual warranty surveyor but to his boss, who told me that (a) they didn't need building control sign off since we were building the property for ourselves rather than as a commercial developer and (b) the basement wasn't covered by the warranty anyway!

 

He asked that I send him the gas and part P certs and, pending one visit from my normal surveyor, they would complete the paperwork. The visit went OK and, though I've no paperwork yet from LABC, I have at least emails from the surveyors a few days prior to 30th stating that all has been satisfactorily completed. I don't feel I'm out of the woods yet, until I get a completion cert from them but I can at least concentrate on a few other things now.

 

Thanks everyone for your help, encouragement and great advice!

Did it work out OK?

[Paene Finitur]

On 01/04/2023 at 00:30, CalvinHobbes said:

Did it work out OK?

Thank you, yes, it did in the end. I got the paperwork from LABC and, I'm pleased to say that in the last week. I've finally got building control sign off 🍾, so I can now try to rearrange the mortgage a bit to get a better rate and apply for my VAT clawback. 🤞

[Paene Finitur]

Looked back at this thread and remembered the sheer panic I felt when I wrote the original post! Thank you all who contributed, whatever you contributed. Such a comfort to know there's others out there who've trodden this path. 👍