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Is A Warranty Required?


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8 replies to this topic

#1 thedreamer

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Posted 02 May 2016 - 05:29 PM

Hi there,

Don't know if anybody can help on this?

Still saving for our self build and I will definitely require mortgage finance to make the project happen. Do self builder lenders require a structural warranty to be in place before they agree to providing a self build mortgage?

If not required at this stage, could it be required upon conversion to a residential product once completion has occurred?

My brief research has concluded that the warranties seem to very expensive and I hope to avoid the need for the work to be inspected by another party.

We have no plans to sell the property, this will very much be our home.

Thanks in advance.

The dreamer

#2 oz07

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Posted 02 May 2016 - 05:54 PM

Not nessecary, especially in your situation. Although the alternatives still require work to be overseen.

#3 recoveringacademic

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Posted 02 May 2016 - 06:38 PM

Haven't got time to look up the threads, but this question comes up often.

The bottom line is that warranties are rarely worth the money Caveat Emptor.

#4 RoundTuit

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Posted 02 May 2016 - 07:46 PM

View Postrecoveringacademic, on 02 May 2016 - 06:38 PM, said:

Haven't got time to look up the threads, but this question comes up often.

The bottom line is that warranties are rarely worth the money Caveat Emptor.

Unless you have to sell within 10 years (whether planned or not), in which case you may wish you'd got a piece of paper that was acceptable to the Council of Mortgage Lenders. Your call on that one!

#5 oz07

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Posted 02 May 2016 - 08:27 PM

Cml accept pcc's can we stop perpetuating this warranty needed for mortgage myth

#6 PeterW

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Posted 02 May 2016 - 08:59 PM

PCC..???

I'm looking at Warranty and it's bewildering as to the choice and what is - and isn't - included ..!

#7 cjard

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Posted 02 May 2016 - 09:30 PM

Oz, members (lenders) can choose not to accept them. Further, they only last 6 years, so some form of warranty may be required in years 7 thru 10 if you wish to sell.

Dreamer, You don't buy a warranty because you want to call upon it to fix something, you buy a warranty because lenders may not lend without one. PCC have their flaws (I have one), and you can find if you embark on the PCC route, that ultimately warranties and PCC cost the same (proportionally) thanks to trumped up admin charges from the lenders for verifying the truth if what your architect says. If you can manage your money so that you can make fewer drawdowns you'll pay less in admin charges and it's better value then..

Actually, come the end of the build you'll probably be struck most by the fact that the lenders have taken the most money off you for the least input

#8 ProDave

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Posted 02 May 2016 - 09:34 PM

I chose not to bother on the new house, the price was several thousand, and had I spent that, then I would now have run out of money before the shell was finished. We won't be borrowing money for the new house and no intention of selling. The only bit of paper that interests me is a building control completion certificate.

We did use the nhbc solo for self build on the last house (the one we are still trying to sell) in case we chose to sell it, and it's 10 years has just expired so that served no purpose either.

#9 stones

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Posted 03 May 2016 - 08:29 AM

Four of our previous builds had an NHBC certificate, the other a Structural Engineers PCC. No issue selling the house with the PCC. All the buyers solicitor (and one assumes their lender) were interested in was that they had a bit of paper saying the house had been built in accordance with the plans.

I had this discussion with the local surveyor who drew up my building warrant plans and decided to get a PCC from him, primarily as an insurance if we do wish to sell at some point. Certainly far cheaper than a warranty (hundreds rather than thousands). The critical bit for the PCC seems to be having the foundations inspected.