Without a Build Warranty, lenders will not lend, buyers cannot buy!

15 October 2021

You’ve obtained funding, wheels are in motion... don’t forget your build warranty! A build warranty provides peace of mind to purchasers and is a requirement for most mortgage providers. Without a warranty, your property is virtually impossible to sell.


What is a build warranty? Why do I need one?

A building warranty is a type of insurance policy that is provided by a developer to the owner/buyer. It offers peace of mind that the building has been constructed to a standard set by the warranty provider.

You need to start looking into the options available to you before you start your build. 

Types of Policies:

  • Residential Developments;
  • Self Builds;
  • Affordable Housing Developments;
  • Commercial Buildings
  • Retrospective/ Completed Projects

The warranty offers peace of mind to buyers and is a requirement for most mortgage providers. Warranties usually cover buildings for 10 years. Without a warranty, the property will be practically impossible to sell.


What’s covered?

Each company’s policy will vary depending on the warranty and building application type. Generally, a warranty will cover as standard; structural damage; defects to walls; roofs and foundations; in line with the policy details. Remember to check about water damage

Most include:

  • 10 or 12 Years Latent Defects Cover
  • First 2 years Developer Liability Period (some providers can reduce this to 1 year)
  • Cover from the date of Building Control sign off

Additional Levels of cover:

  • Road & Sewer Bonds
  • Insolvency Cover
  • Performance Bonds
  • Deposit Protection

A warranty for a residential building will typically last for ten years with differing levels of protection in the earlier years of the policy. Commercial property warranties tend to have a slightly longer cover, most are transferrable to future owners.


Why use Peritus? 

The market is so changeable no one provider is consistently cheaper. Cheaper is not always best! 

With years of experience in Build Warranties, we are independent and not tied to one warranty provider. Our aim is to assist you to find the best value and, more importantly, the most suitable product to service your development. We’ll stay involved as much as you want, to help you manage the process, resolve queries and liaise with the warranty provider on your behalf to ensure your certificates are received in time with your deadlines.

When we work with a warranty company, we ensure they:

  • Are backed by an A-rated insurer;
  • Are approved by the majority of lenders;
  • Have efficient systems in place to issue your certificates at the end of the build;
  • Demonstrate competitive and realistic pricing
  • Strive for excellent service levels are in line with client expectations
  • Offer technical support is provided


For more information on Build Warranties please call Doreen on 07892 728 779 or email doreen@peritus-group.co.uk