Best Structural Warranty Provider, UK
Build Warranty: Best Structural Warranty Provider, UK
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Professional Consultants Certificates
PCCs are becoming the popular choice for Self-builder, and Developers alike, are approved by the majority of Lenders and come without a madatory 2 year defect liability period for the Developer. PCCs are a cost effective alternative to LDI Insurance.
Latent Defect Insurance – Residential
We provide specialist cover for Home Warranties – new build, renovations/conversions, partially complete and completed properties including listed buildings to barn conversions. Best rates Guaranteed.
Latent Defect Insurance – Commercial
The Commercial Policy offered by BUILD WARRANTY provides cover to suit the demands of your project. Our team of specialists are here to advise you to ensure you have the best cover possible.
From renovations and conversions to new projects, Build Warranty’s construction warranties are designed to protect all potential risks.
A BUILD WARRANTY helps build your development securely and efficiently whilst also developing confidence between developers and consumers.
With experience working on large-scale housing association projects, BUILD WARRANTY are your first choice for industry expertise and professionalism.
Self-Builders & Home Owner
Personal service, industry expertise and straight talking advice make BUILD WARRANTY the UK’s leading Broker for self-builders and private clients.
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BUILD WARRANTY is a trading name of Build Warranty Group Ltd, registered in the United Kingdom under registration number 11613914, with subsidiary companies Build Warranty Technical Services Ltd and Build Warranty Insurance Services Ltd. Build Warranty Insurance Services Ltd are Appointed Representatives of Servca Ltd who are authorised and regulated by the Financial Conduct Authority under reference no. 596006.
What is a building warranty? Why do you need one and where do you get it?
A structural or building warranty is technically ‘structural defects liability insurance’. Warranty providers’ carry out an inspection process as the build progresses and, on completion, a 10-year warranty is provided covering major defects in design, materials or workmanship.
The series of inspections often resembles those undertaken for building regulation approval. Unlike building regulation approval, a building warranty is not a statutory requirement.
“Why then”, you might be thinking, “do I need one?”
Most banks and building societies require a structural warranty before they will lend against a newly built property. The design workmanship and material aspects that it covers are not usually included in standard buildings insurance and the mortgage lenders want to manage their risk.
If you need a mortgage to complete your build or have any plans to sell it to someone who might need one to buy it, then you need a structural warranty.
It does offer an extra layer of insurance for you and the peace of mind that another experienced set of eyes has checked the integrity of your build.
Building Warranty Providers
There are a number of companies who offer building warranties for new build houses and of 14 Nov 2017 here are a few of the main ones.
- Buildzone 10 Year Structural Warranty.
- LABC New Home Warranty.
- ProAktive Self Build Structural Warranty.
- Protek Self-Build Structural Warranties.
Some of these warranty providers offer a building control service alongside their warranty schemes at an extra cost.
It is worth mentioning that there is an alternative to the building warranty – The Architects Certificate – Your architect can inspect the work as it progress and issue a certificate on completion.
Insurance is provided via the architect’s indemnity insurance. If a defect occurred you would have to sue your architect and prove negligence in order to obtain a payment. This option is not popular with builders or architects alike.
Structural warranty schemes tend to follow a similar pattern:
- The applicant submits plans, specification, completed application form and an application payment to the provider.
- The provider will calculate a quote for the policy. The fee is calculated based on the individual property but is mainly linked to floor area.
- An inspector will visit the applicant for an appraisal meeting.
- The applicant signs and returns an acceptance letter.
- The warranty provider will supply a technical manual, other policy documents and a site folder to log progress and inspection results.
- The build begins and site inspections are requested at designated stages (add these to your programme) to check compliance with the warranty standards. It is worth noting that often the technical standards required by the warranty provider are higher than those required by building control.
- When the build is complete and all stage certificates and a completion certificate have been issued the 10 year structural defects cover begins.
Have a look at the building warranty schemes available, check the cover (including the small print) and contact them for quotations.
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How to get loan guarantees – real estate in England
Do you want to invest in English real estate?
For those looking to develop property in England or would like to invest in housing development in this country, the following information may be of interest:
As of March 2018 the Ministry of Housing, Communities & Local Government has launched a program to provide government guarantees for loans to private companies engaged in investment or development of housing in the UK for subsequent rental on the private market. This is a program called the Private Rented Sector Housing Guarantee Scheme. The minimum size of projects starts from
10 million pounds of their total final cost. A project can be either a single object or a cumulative portfolio of investment properties. Any housing that will be rented out for a long-term lease qualifies under this.
However, commercial areas such as student housing, nursing homes, and serviced apartments are excluded from this scheme. The guarantee is provided for the entire period while housing is rented, but for a maximum of 30 years.
Volume of loan guarantees for developers
The volume of loans in each project should not exceed 80% of the total investment value of the object. That is, the ratio of loans to own financing should be a maximum of 80 to 20%.
To confirm compliance with program rules, the borrower is required to conduct annual appraisals of the value of its properties.
Please note that the guarantee is provided only after construction is completed, although a preliminary letter of opinion for banks is issued to developers immediately after registration.
There is no limit to the financial scope of the guarantee and in theory they can be issued for any investment project amount over £10 million.
Where to invest abroad?
If you are thinking about where to invest abroad, or how to create your portfolio of profitable real estate in Europe, and in England in particular, then this information may be useful to you. This is not the only state program in the country to encourage investment in new housing construction. Recently, the British government has developed a number of initiatives to improve the competitiveness of this sector for investors compared to other countries in Europe. More detailed materials can be found on the website of the Ministry of Housing, Communities, and Local Councils of Great Britain.
If you already have plans to start real estate development or invest in housing development in England, we will be happy to help you.
Do you have further questions? Our Russian-speaking specialist can answer them as part of a Skype video meeting. Book a personal consultation or contact us now.
Great Britain real estate as an object of effective investment. UK property article
Currently, the overseas real estate market is developing dynamically. First of all, this is due to the growing demand for housing with high rental potential. Therefore, there is nothing surprising in the fact that real estate in London has been and will remain the main object of investment for a long time to come.
In order for investments in real estate to pay off, you need to build your investment strategy correctly. The most successful UK real estate investment companies are efficient in solving their clients’ problems and have the resources to give them a significant advantage over their closest competitors.
Investments in UK real estate can only be successful if the company is well versed in the strategies of the local market and understands how important it is to correctly assess the prospects for the development of the region, city or country as a whole.
In order to make the best investment in real estate for an English property buyer, it is important to determine which properties are best to specialize in. It is profitable to invest in both commercial real estate (garages, warehouses, parking lots, shops, office and shopping complexes) and residential (cottages, apartments, houses). In addition, many investors prefer to invest in the development of industrial real estate, namely in the construction of various factories and plants.
It is no less profitable to build your business on investing in the purchase of land plots with the possibility of subsequent resale or construction of various objects on their territory.
Recently Russians are more and more interested in the possibility of acquiring real estate abroad. Such an investment is associated with significant risks, although it promises a fairly large profit with a successful transaction. When investing in overseas real estate, it is especially important to assess the real estate market of the country in which the acquisition of objects is planned. In the long term, the price of purchased real estate is growing, but this process is quite lengthy.
There is a risk of making a mistake here even if the forecast of market analysts is taken into account – such information is not always reliable.
Many believe that the greatest profit can be made by buying real estate in developing countries. This is due to the fact that the economy of such states is at the stage of formation and development. Consequently, market prices for residential, commercial and industrial real estate can fluctuate significantly. At the same time, the risks are quite high, since there are no and cannot be any guarantees that in a developing economy the value of the object will increase.
Investing in real estate objects at the stage of their construction is also popular. In this case, it is more profitable to cooperate with foreign developers, as they, as a rule, can provide reliable guarantees for the fulfillment of obligations under the contract. Of course, there is a possibility that the object will not be in demand after the completion of construction, but such situations are quite rare.
Significant profits can also be made by investing in properties in need of restoration. However, the implementation of such projects will require huge financial investments. In addition, the investor will have to constantly participate in the reconstruction and repair, as well as carefully monitor the progress of the entire scope of work. Such grandiose projects are successful only in cases where there is a high probability of a profitable resale of the renovated property.
Thus, foreign real estate of any type is quite attractive for investors, as it gives the opportunity to get the maximum percentage of profit. The main thing is to choose the right country for investment.
Great Britain (United Kingdom of Great Britain and Northern Ireland) is divided into four regions – England, Wales and Northern Ireland, Scotland.
Foreign investors prefer London, both legal entities and individuals, in the UK they have the right to buy any property. These are mainly Asians, Russians, Arabs and American citizens.
The UK real estate market is diverse – it can be residential, commercial property and land. Real estate in the country is acquired for personal possession or leased out for quite long periods. Personal ownership (freehold – free) means that the housing and the land under it are the property of the owner of the property.
When real estate is leased for a long period, the ownership of the land does not arise, and the land is also leased to the tenant for the same period.
Rental income in the country directly depends on the location and type of real estate, and is more than five percent per annum.
Real estate in the UK is bought in several stages: first, the investor (potential buyer) browses and selects the property from catalogs, its type, calculates the budget, and possible associated costs, possible payment options and time limits, takes into account all possible family wishes for this account. Information is collected using all possible sources (real estate agents, the Internet, international real estate exhibitions in different countries or real estate agencies).
Next, the investor selects his representative (realtor) – a professional from a real estate agency, and with his help begins to carry out his undertaking – the purchase of real estate.
As a rule, real estate agencies are controlled by the state and guarantee the correct execution and cleanliness of the purchase and sale transaction. In this case, real estate agents carefully study all documents for this property (location, type, possibilities for completion and new construction, internal properties of the property, finishing materials, etc.) for correctness and legality of execution.
Buying property in the UK can be done through an intermediary (under a notarized general power of attorney) or in person. After selecting the final version of the desired property, the buyer, together with the seller, concludes an Offer (in other words, an official purchase offer). At the same time, the buyer usually pays 300-500 pounds in cash to the real estate agency for work on the further continuation of the transaction. This fee, regardless of the result (whether the transaction takes place or not), as a rule, is not returned to the buyer (investor). All possible payments between the two parties (the seller and the buyer) are carried out only in a non-cash form by transferring from the buyer’s account directly to the personal account of the real estate seller’s lawyer.
After that, a Memorandum of Sale (preliminary contract) is concluded, and at the same time, lawyers from both sides (both from the seller and the buyer) must be present. This agreement contains contact information about the persons involved in the transaction, details about the property and other data about it.
The next stage is the drafting of the main contract and the examination of the object. The expert opinion serves to determine the final agreement on the price of the object and sign the contract.
This is followed by the payment of a deposit (about 10% of the cost) under the transaction in the amount of at least ten percent of the contract amount and the exchange of signed sales contracts by the seller and the buyer.
After that, the buyer pays the remaining amount of the debt under the contract and repays taxes from the transaction: stamp duty, municipal fee, agency services, services of an independent appraiser and services of a mortgage broker (mortgage adviser). And after that, he submits documents to the Land Registry (land registry). The purchase of real estate in the country can be carried out on a mortgage loan, the amount of which can reach up to 70% of the price of the object and the repayment period – after 25 years, the loan rate depends on the specific case and at the time of writing this article is one of the lowest in history.
Output. Vadim Yukhnevich, Certified Mortgage Broker in London (CeMAP):
The attractiveness of buying property in the UK for Russian investors is seen, first of all, in connection with further prospects for economic growth in the country. Buying real estate in the UK means prestige and stability, confidence in the future, there is practically no risk of losing money investments and (according to international statistics) a gradual decrease in inflation, an increase in rental rates and a decrease in bank%, and a gradual increase in stability in the economy, and most importantly, it is the state and legal protection of property owners.