PSC88 Posted January 9 Posted January 9 Hi I’m the process of starting a rebuild and standing my mortgage. ive had a few warranty quotes some ranging from around 8k- £15k Conoanies have asked for varying level of details for quote, some asking for copy of the plans and contractor details etc others just asking simple questions like location square footage construction type etc. My current construction costs are coming out around the £1mill park. This is me self managing the projects and using individual contractors. (Also getting a really good and discounted price on the bricks). some of the warranty providers have quoted on a rebuild cost of £1mill others have stated professional reinstatement cost of £1.5mill. i already own the land. my query is, i want the warranty as cheap as possible as its there just so my property is mortgagable and secondly saleable if i need to sell in 10 years. thw valuation does it matter should I just go cheap as possible and get the best price ? or should I go all out and value the rebuld at max value and pay the extra few K many thanks
nod Posted January 9 Posted January 9 Firstly I’d go for as cheap as possible Its unlikely that the house will ever need rebuilding All the warranty companies rarely pay out But if you are likely to sell As we did on our previous build It’s a necessary evil We had a 400k rebuild on our previous Build cost 200k Our biers solicitor questioned the 400k as we sold for 700k We just said that the site was worth 350k The warranty cost 3k This time we have gone for a professional cert Excepted by most lenders except HSBC The end value has been estimated at 1.2 million It’s cost us 350k to build Warranty cover is 600k Cost of cover £1500
PSC88 Posted January 9 Author Posted January 9 Hi Nod thanks for your reply, my for instinct is to go cheap as possible. will my self builder lender question the amount of cover I go for? For example I’ve submitting costings for my build circa £900k to the lender. if I was to get a warranty cover for say £900k (even though this is me self managing saving costs etc as using a turn key builder/contractor will be a lot more) finally will the warranty company ask for any more details once they give the quote? In terms of rebuild costs or is it a case of that’s the desktop quote purchase it and that’s that done. Ive also heard of some warranty company inspectors being very picky when doing inspections etc so didnt want to save a few pounds now and pay later during the build
nod Posted January 10 Posted January 10 I’ve not used a mortgage on ours so can’t answer mortgage requirements however plenty on here have As far as warranty providers being picky We had our first with one of the largest s suppliers Protect He inspected the foundations from his car Muddy and he had forgotten his boots Inspected the roof from the ground Though he did say I’d done a “Grand Job” Final inspection He spent ten minutes Again stood in my hallway Told me the certificates he required and said I’ll have to dash I’m covering for someone who’s hurt his back They seem to rely on building control doing there job They know it’s unlikely that they will ever have to pay out Get the cheapest warranty that your mortgage supplier will except Try Jeremy Stanton at CMLC Have a look at a previous post of mine Cost per m2 Cost of fees and surveys can really tie your hands Before your have even put the first spade in the ground Survey suppliers have a good way of up selling Even Echo surveys offering Gold Silver and Bronze My answer is give me the cheapest it’s only a bloody house 😁
DownSouth Posted January 10 Posted January 10 Our initial rebuild cost for the warranty and the site insurance took account of the fact we’re doing a load of work and all PM. The mortgage company however were only interested in what a professional rebuild cost was - their risk if it all goes wrong and a builder needs to finish it - they need to know what would that cost not self-builders working every hour. We didn’t know that when we took out policies so it cost us more money (hundreds of pounds) because we had to up both the site insurance and warranty to reflect ‘professional reinstatement costs’ in order to get the mortgage released. So going low might not be the best strategy. I’d be interested to know how many SQM the 8-15k quotes are for - is it a huge house or unusual construction you’ve gone for?
SBMS Posted January 10 Posted January 10 23 hours ago, PSC88 said: Hi I’m the process of starting a rebuild and standing my mortgage. ive had a few warranty quotes some ranging from around 8k- £15k Conoanies have asked for varying level of details for quote, some asking for copy of the plans and contractor details etc others just asking simple questions like location square footage construction type etc. My current construction costs are coming out around the £1mill park. This is me self managing the projects and using individual contractors. (Also getting a really good and discounted price on the bricks). some of the warranty providers have quoted on a rebuild cost of £1mill others have stated professional reinstatement cost of £1.5mill. i already own the land. my query is, i want the warranty as cheap as possible as its there just so my property is mortgagable and secondly saleable if i need to sell in 10 years. thw valuation does it matter should I just go cheap as possible and get the best price ? or should I go all out and value the rebuld at max value and pay the extra few K many thanks I don’t think your self builder lender will care about your warranty? Ours didn’t. Do you mind me asking what your total sqm is? Your build costs seem high for no primary contractor - but then again you might be building a mansion!
Alan Ambrose Posted February 3 Posted February 3 A related question. Do the standard providers allow for inflation? - (say) £600K rebuild cost now may well be double that in 10 years time.
SBMS Posted February 3 Posted February 3 Most latent defect warranties are typically index linked and have a maximum payout that is the sum of the reinstatement value at that point in time. Most self build insurance policies are not index linked and have a maximum sum value that is equal to the reinstatement value declared at the outset.
Alan Ambrose Posted February 4 Posted February 4 @SBMS >>> Most self build insurance policies are not index linked OK that suggests they are even more useless than I previously imagined. Do you thing that mortgage providers catch onto this (which would be a problem if selling) or are they oblivious?
SBMS Posted February 4 Posted February 4 (edited) 6 hours ago, Alan Ambrose said: @SBMS >>> Most self build insurance policies are not index linked OK that suggests they are even more useless than I previously imagined. Do you thing that mortgage providers catch onto this (which would be a problem if selling) or are they oblivious? Self build insurance only covers the period of construction. You might have got mixed up with latent defect/structural warranties which kick in once the build is habitable. insurance - in case builder accidentally drives into your house and knocks it down. warranty - in case builder didn’t put your brick ties in and it falls down. Edited February 4 by SBMS
Alan Ambrose Posted February 4 Posted February 4 >>> You might have got mixed up Yeah sounds like it - easy for me to do Thanks for the clarification.
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