New Build Warranty ...recommendations? / warnings?

[Ed_MK]

As we are ALMOST up to the foundation stage and are waiting for the building regs to be 

finished ...I suppose its time to think of a warranty

 

I HAVE done some reading , seen various costs, heard some good and some horror stories LOL
We are building a 3 bed timber framed Potton house footprint of 12m  x 12m (it does have a large
single level sunroom ..which makes it SOUND bigger!

 

Bearing in mind it is Timber, and a Potton (who seem to always mention the SAME warranty company)
Should i look elsewhere? Are prices fairly assimilated across the industry? Are some better than others
for service

 

As always your advice is appreciated

 

 

PS . If you have had any adverse time with a company, and you would rather NOT post it, you can always PM me.

As I know sometimes its hsrd to talk about openly ..especially if its ongoing 

[nod]

We went with Buildzone 

absolute waste of money

But if you ever want to sell in the first ten years You do need a warantee 

we chose buildzone as they were recognised by most of the mainstream lenders 

He’s been to site twice

didnt get out of the car the first time

to muddy 

Second time there ten minutes

[Oz07]

6 minutes ago, nod said:

We went with Buildzone 

absolute waste of money

But if you ever want to sell in the first ten years You do need a warantee 

we chose buildzone as they were recognised by most of the mainstream lenders 

He’s been to site twice

didnt get out of the car the first time

to muddy 

Second time there ten minutes

Can we stop perpetuating the myth that you NEED a warranty. I've got a CML list on my computer of all the different lenders requirements. I would estimate 80% accept Professional Consultants Cert, some wanting this also to be supervised by RIBA architect. The remaining want warranties but mostly LABC or NHBC. The lenders which will accept warranties by companies other than these are surprisingly few and therefore makes you question the value of getting a warranty over the usually cheaper PCC if not using the 'big two'!

[joe90]

I did my homework on this subject and I agree about warranties, you don’t need one and I don’t have one. If you sell within ten years ( which I don’t plan to do ) you can get an insurance against claims which I have been told costs less than the warranty !!!!

Edited December 19, 2017 by joe90
Edit

[PeterW]

16 minutes ago, joe90 said:

[...] You don’t need one [...]

 

That depends on your lender. 

 

From experience, I’ve seen 3 or 4 lenders who explicitly request a warranty, and there was no mention of accepting professional liability certificates or other similar things. 

 

As with everything, get it in writing from a lender as to exactly what they want and accept, and then get them to confirm that the one you have purchased is accepted by them. This stops them changing their criteria part way through the build process. 

[nod]

1 hour ago, joe90 said:

I did my homework on this subject and I agree about warranties, you don’t need one and I don’t have one. If you sell within ten years ( which I don’t plan to do ) you can get an insurance against claims which I have been told costs less than the warranty !!!!

I don’t think any of intend selling But you never know what’s around the corner

 

I can’t speak for the other lender

But I know for a fact HSB won’t lend without

 

[lizzie]

My OH is a lawyer, a property and planning lawyer of more than 40 years experience. He insisted on us getting a warranty even though we were not getting a mortgage.

 

He looked very carefully at CML list of approved providers and who was accepted by most lenders. We chose Premier Guarantee in the end. We also got a quote from LABC both happy with MBC frame and slab. I am also happy that their inspections give a us a double check as we deliberately opted not to have them do building control inspections too. I like the two separate inspections one may see something another might miss.

 

It is true that you don’t actually ‘need’ a warranty if you are not borrowing to build but anything that makes a future sale easier has to be a good thing in my opinion.  OH does know first hand of cases where mortgage lenders have been sticky about the loan because of no warranty in place. I don’t want any future purchaser of mine getting cold feet because there is no warranty in place. Yes there are routes around but its a rubber stamp job for lenders if a warranty from an approved supplier is in place.

 

I think a warranty is not so much for us as the builder but something to make any future sale as smooth as possible.  A purchasers finance is not in the sellers control. Who or how they raise funds  is for them and as a seller I would always want to facilitate the easiest possible route to a successful sale.

 

We none of us know if we may need or want to sell in the coming decade so I view our warranty as an essential to have in my file. I have spent most of my life in the property market one way or another and anything that makes is easier to complete a transaction is a big plus in my book.

[LadyBuilder]

I assume that this is only relevant for a handful of people, but we have to have a warranty in place precisely because we will not be getting a self-build mortgage

 

To gain CIL exemption as a self-builder, you need to either have a self-build mortgage or a warranty

Edited December 19, 2017 by LadyBuilder

[nod]

39 minutes ago, LadyBuilder said:

I assume that this is only relevant for a handful of people, but we have to have a warranty in place precisely because we will not be getting a self-build mortgage

 

To gain CIL exemption as a self-builder, you need to either have a self-build mortgage or a warranty

41 minutes ago, LadyBuilder said:

I assume that this is only relevant for a handful of people, but we have to have a warranty in place precisely because we will not be getting a self-build mortgage

 

To gain CIL exemption as a self-builder, you need to either have a self-build mortgage or a warranty

I agree with both of the above

The banks like to have that certificate

I renovated a property about three years ago It was riddled with damp so I decided to tank the whole place something I’ve done dozens of time over the years We got a buyer right away Just before  completion we were asked for the 25 year certificate 

I exsplained that I’m no longer exfoliated to a scheme

big problem

I contacted a local company who came down wrote me a certificate out

£150 later everybody was happy

Better to have and not need it 

 

[lizzie]

We were lucky no CIL in our area

[ProDave]

When we built the last house we paid for the nhbc Solo for Self Build.  That has now passed it's 10 years so arguably was as waste of money. This time round we have not bothered, we did get some quotes and the costs had more than doubled.

[nod]

1 hour ago, lizzie said:

We were lucky no CIL in our area

We would of had a cil of 16k 

Quite a chunk of money had we not been excempt 

 

I agree with Dave The warantees are not good value

extremly unlikely they will ever pay out

£1800 is a lot of money for a bit of paper 

But if you do need to sell you are limiting your market

If it also effects your cil agreement 

Then it’s a no brainier 

[Jeremy Harris]

5 hours ago, LadyBuilder said:

I assume that this is only relevant for a handful of people, but we have to have a warranty in place precisely because we will not be getting a self-build mortgage

 

To gain CIL exemption as a self-builder, you need to either have a self-build mortgage or a warranty

 

 

We don't have a self-build mortgage, neither did we have a problem with a CiL exemption, and we don't have a warranty, mainly becuase we once bought a new house with an NHBC warranty and when we tried to claim we found it wasn't worth the paper it was written on.

 

What are the links between CiL exemption, a warranty and a self-build mortgage?   I haven't seen any connection between these at all.  All the local authority needed was to be assured our build was a self build (easy, we told them, both directly and in the planning application).  No one ever asked whether we had a warranty or a self-build mortgage, either, and I can't see why a local authority would be interested in either.

[nod]

8 hours ago, Oz07 said:

Can we stop perpetuating the myth that you NEED a warranty. I've got a CML list on my computer of all the different lenders requirements. I would estimate 80% accept Professional Consultants Cert, some wanting this also to be supervised by RIBA architect. The remaining want warranties but mostly LABC or NHBC. The lenders which will accept warranties by companies other than these are surprisingly few and therefore makes you question the value of getting a warranty over the usually cheaper PCC if not using the 'big two'!

?

[Stones]

We went with a professional consultants certificate, simply as that was the most cost effective way of having some form of certification that the house had been built according to the approved plans, in the event we have to sell.  From a buyers (and a lenders perspective) you have to consider that self build is a pretty broad definition, from those who contract a builder to do everything to the other end of the scale where people with no previous skills, build a house with their bare hands.  SWMBO has commented to me on several occasions that having seen various levelso of workmanship on DIY self builds over the years, she wouldn't touch certain houses with a barge pole.  That's not to say there was anything wrong with those house structurally, or that a builder would do any better, but perception is everything.   The comfort blanket of a warranty or a PCC, may well set anxious minds at rest.

[Oz07]

The point is that majority of lenders accept pcc. Fair enough if you can justify inflated cost of a warranty by avoiding a cil payment. As @JSHarris questions though I am also sceptical. I would think there are other ways to prove self build than taking out a product which is specifically designed to aid selling the property! I've always gone pcc for the fact I'd be prepared to tell any future buyer to switch lenders. Others may not be so assertive?

[LadyBuilder]

(a) An approved claim from HM Revenue and Customs under
`VAT431NB: VAT refunds for DIY housebuilders'

(c) Proof of an approved Self Build or Custom Build Mortgage# from a bank or
building society for your development.
(b) Proof of a specialist Self Build or Custom Build Warranty* for your development

 

This what you need to supply at the end of the build for the CIL exemption. In our case the CIL liability is 214k. If I mess up the VAT return, then I stand to not only be without a VAT return, but also CIL liable. Hence the warranty as I can't get a self build mortgage....

[Oz07]

Unreal that isn't it! 

[Jeremy Harris]

Nothing like that here.  Just a declaration that it was a self-build.

[LadyBuilder]

I do however wholeheartedly agree that it is not worth the paper it is written on... Proving whose fault it is, is impossible. Materials blame builder, builder blames other trades or materials, etc. Then ripping out stuff and making good again never seem to be covered by any material warranty and builders don't want to know. Insurance rarely pays out and only after years of chasing

 

Essentially it is either useful to the bureaucracy or to the people who are not interested in building and falsely believe that the piece of paper entitles them to have somebody ‘fix’ it for free…

[LadyBuilder]

I realise that I am ranting a bit, but as I am in the process of sorting out warranty, it is a sore subject.

I happen to have a really good relationship with the local Building control officer. Done a few jobs together and he knows me and trusts me. All of the quotes charge either 2k for site inspection (if I chose to have the LA Building control) or 2k with their own building control but no site inspection fees. So they essentially bully me into having theirs, as the council charges  1k for it

[nod]

32 minutes ago, Oz07 said:

The point is that majority of lenders accept pcc. Fair enough if you can justify inflated cost of a warranty by avoiding a cil payment. As @JSHarris questions though I am also sceptical. I would think there are other ways to prove self build than taking out a product which is specifically designed to aid selling the property! I've always gone pcc for the fact I'd be prepared to tell any future buyer to switch lenders. Others may not be so assertive?

I think you are way off the mark

I would have been ok with an architect certificate 

But was told most lenders wouldn’t be satisfied with that

As far being assertive Tell the potential purchaser to go and find another lender

im guessing you haven’t sold many houses

[Ferdinand]

I think a survey report probably has more weight for the purchaser than a warranty, especially if it is old enough (2-4 years?) for any serious problems to have emerged and the initial drying out etc to be complete.

 

For peace of mind I might go for a warranty, depending on the cost. 

 

When we sold a biggish Grade 2 Listed property (5k sqft, 1500 to Victorian) we had our own full structural survey done as part of the sales material.

 

Ferdinand

[Oz07]

10 hours ago, nod said:

I think you are way off the mark

I would have been ok with an architect certificate 

But was told most lenders wouldn’t be satisfied with that

As far being assertive Tell the potential purchaser to go and find another lender

im guessing you haven’t sold many houses

I literally have the CML extract on my computer listing the lenders who accept PCC. Who told you most lenders don't accept it? Did you do any of your own research or just accept that persons word for it?

 

Sold a couple of new with PCC, both mortgaged, both times wasn't an issue.

[Jeremy Harris]

We bought a new house (had been a self-build, by a "serial self-builder") that had an architects certificate.  We had no problems at all getting a mortgage on it; every lender I approached was happy to accept it, so I'm convinced that, in practice, all this fuss made about the importance of warranties is exaggerated.   Lenders are not daft, and must know full well by now that something like an NHBC warranty is a worthless bit of paper in reality.