Frequently Asked Questions
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Yes, legal costs for liability claims made against your business are included as a standard option in our contractors’ all risk insurance cover.
In the event of a claim, your contractor’s all risk policy will offer you access to sound legal advice in a range of circumstances. You will be able to obtain expert legal guidance relating to your property, employment, any contract disputes, and a variety of other legal issues.
They can be, but they also come with more flexibility. Our job is to find you the most competitive rate for your circumstances.
According to Part 5 Section 144–145 of the Building Safety Act 2022, a new build home warranty is now required by law for any developer building new residences. This means that developers must provide an appropriate building warranty to the purchaser to legally sell the home.
This applies to anyone ‘undertaking or commissioning’ the ‘construction or conversion’ of a building to create one or more dwellings. If you’re carrying out a self-build or conversion project for your own use, you may not be obligated to take out a warranty unless you intend to sell it later on – but it’s still advisable to set up a building warranty from the outset for your own financial protection.
Mortgage providers will also be keeping abreast of the new law, so you can expect a 15-year building warranty to be a definite requirement for obtaining a mortgage for your new build or converted residence, regardless of which lender you go to.
If you have any questions about our structural building warranties, please call us on 0161 928 8804 to speak to our team, or email your query to info@architectscertificate.co.uk and we will reply as soon as possible with more information.
If you would like cover for any temporary site structures, such as huts or storage areas, you should inform us of this when you take out the insurance cover. The temporary site structures and their contents will be covered by your insurance policy, as long as you tell us about them when you purchase the cover.
If you’ve already taken out a contractors’ all risk insurance policy with us and you’ve decided that temporary site structures are needed after the event, just give us a call and we can update your policy.
To discuss exactly what would be covered with a contractors’ all risk insurance policy with a knowledgeable member of our team, give us a call on 0161 928 8804 or send us a message and we will get back to you shortly.
here are several Build-to-Rent benefits for investors, such as:
- Opportunities outside of London – Thanks to viability in areas with good transport links, land values and employment rates, Build-to-Rent offers investors fantastic opportunities in other cities, such as Birmingham and Manchester.
- Long-term investment – Incoming rent combined with increasing house prices makes a build-to-rent scheme a non-volatile investment.
- Faster market delivery – Modular rental developments can be put out to the market much faster than homes for sale.
- Smart technology – Property development will massively adopt digital infrastructure, and smart buildings are essential to reducing energy consumption.
Yes. Most mortgage lenders and development funders require an approved structural warranty before they will release funds on a newly built or converted property. The ABC+ warranty is accepted by major lenders. If you would like to check whether your lender recognises the ABC+ warranty, please contact us for confirmation.
Yes. ABC+ offers flexible options tailored to your budget and project timeline.
As explained above, there are generally several elements of construction work that this type of insurance covers. That said, these aren’t always included as standard, so you may have to request some amendments before you’re happy with the extent of your CAR policy.
If the contract you’re offered doesn’t include the following, and you believe you may need them, you might want to ask your insurer to add any of these things to your suggested cover:
Temporary buildings
Onsite storage
Engineer fees
Restoration of plans/drawings
Demolition/removal of debris
Overtime work/holidays
Surrounding property
Equipment during transit
Commercial legal expenses
These extras aren’t guaranteed, as it depends on your provider’s risk assessment, and usually means extending claim limits. Additional cover also means additional costs, resulting in higher premiums.
For any more help with contractors’ all risk insurance cover, don’t hesitate to contact us.
Yes. ABC+ works with specialist lenders who consider individual cases, including low credit scores, self-employed income, or non-standard properties.
It’s unlikely that any lender would agree to fund a construction project without the proper financial protections. This includes a Structural Warranty, which protects the bank’s investment by covering repair expenses if latent structural defects occur. Self-build mortgages work differently, in any case.
For this situation, you would need a stage payment mortgage. This is a specialist type of loan which is released in instalments rather than a lump sum, allowing you to pay for each stage of the build as it progresses. From purchasing a plot of land to completion, the bank will require regular updates.
Depending on the circumstances of your self-build project, you could either get stage payments in advance or arrears. Whether you pay upfront and recover the cost in arrears or use an advance payment to hire contractors and buy materials, the process will be much smoother with a warranty.
At ABC+ Warranty, we can provide certificates following inspections at every stage, which you can use to confirm the status and quality of the build to your bank to release the next payment. Unless you want to pay for everything yourself and risk not being accepted for a mortgage after completing your self-build project, you should secure a Self-Build Structural Warranty while you’re still in the planning stage.
Banks are unlikely to offer you a mortgage loan if your property presents an unprotected financial risk. After all, if you wouldn’t want to put your money into an uninsured development, why would they?
Even if you find a lender willing to provide a mortgage without a Structural Warranty, they will probably offer you a smaller loan, meaning you’ll have to cover the rest of the property’s value yourself. It’s better to secure a 10-year Building Warranty early on and update it later if required.
Most lenders expect homebuyers to already have a Structural Warranty set up before applying for a mortgage, as the appropriate certifications and site inspections need to be confirmed before they release any funds. They’re likely to take this approach, whether you opt for stage payments or a lump sum and are less likely to accept your application without a warranty at least being in progress.
You’ll also find it much easier to sell the property with a warranty if you intend to do so within 10 years of its completion. The Structural Warranty stays with the building and transfers to the new owners, making the property more attractive to potential buyers. Just like you and the mortgage lender want to avoid financial loss and devaluation, new buyers will also prefer to protect themselves.
Always check that everything you want your Structural Warranty to cover is specified in the contract terms before you agree to it, as it may be difficult to change it later if your mortgage provider has an issue with the policy that prevents your application from being successful. Bear in mind that even with a successful mortgage and Structural Warranty, further construction work on the property can invalidate the initial warranty, and may also mean re-mortgaging it.
Yes. That’s one of the advantages of working with ABC+. We can integrate your warranty into the finance package.
Yes. One of the benefits of using ABC+ is the ability to bundle your building warranty or PCC into your specialist mortgage, avoiding upfront payments.
Modern methods of construction including modular builds, timber-frame structures and eco-friendly homes can be eligible for a structural warranty, depending on the provider’s criteria and the build system used. If you’re planning a non-traditional construction method, please contact us with your project details so we can confirm whether it can be covered under the ABC+ warranty.
A CML Certificate, which is a Professional Consultants Certificate (PCC) accepted by the Council of Mortgage Lenders (CML), is a cheaper option than a Structural Warranty. However, they aren’t the same thing, so you can’t substitute one for the other. A PCC is more of a temporary first step.
The PCC only states that your property complies with Building Regulations upon completion. It holds the builders liable for structural issues for six years from the date on the certificate. The difference is that it’s your responsibility to take them to court and prove that they were professionally negligent.
As you’re probably aware, such legal proceedings can be time-consuming and expensive. If the builder goes out of business before you can take them to court, or you don’t win the case, you’ll have to cover the costs yourself. A Structural Warranty offers more reliable financial protection.
Yes, in some cases, it may be possible to apply for a Structural Warranty after the building is finished. Also referred to as a Completed House Warranty, the premiums are often higher because we can only carry out one post-completion survey. When you set up a warranty earlier, this allows surveyors to inspect the build throughout the process, which minimises the risk of mistakes going unnoticed.
If your retrospective Structural Warranty application is accepted, the cover term will still begin from the date on the completion certificate, not the date of acceptance (unless these are the same day). This is because lenders will only accept Structural Warranties with the original terms and conditions, so we aren’t able to amend the contents of the policy or tailor it to your property’s circumstances.
This means that your property must meet all the standards set by our chartered surveyors and pass the inspection satisfactorily to comply with the unabridged Structural Warranty terms. To keep the wording as prescribed by UK Finance, and allow you to use the warranty in a mortgage application, the contract stays the same, as though you signed it at the start of construction.
We understand it’s not always possible to apply for a warranty before completion, but you should always aim to get a Structural Warranty as soon as you can. The earlier, the better, as you’ll get the best rates if we can oversee the build from the very start (usually involving around six inspections).
The longer you wait, the greater the risk, as some defects won’t be detectable if the progressing construction has made those areas inaccessible. A post-completion Structural Warranty will also come at a higher cost the later you leave it, and is likely to hinder loans and mortgage applications.
You can also apply for a 10-year structural warranty after completion. However, the same rules apply for completed house warranties to be acceptable to lenders – i.e. no changes to wording.
This means that a structural warranty will still only apply from the date of completion, no matter how long you wait to get the certification afterwards. It’s worth securing a completed housing warranty cover as soon as possible, so you don’t have to worry about structural issues and repair costs from the beginning.
However, we recognise that this is not always possible, so we’re here to help with the delayed application cases, too. Even if you already had a post-completion inspection, we will thoroughly survey the building when you apply for a completed home warranty upgrade.
Selling any property comes with its risks, but if you intend to sell a property that’s been built in the last 10 years and doesn’t have a structural warranty, it could be impossible for your buyer to have a mortgage approved.
Major mortgage lenders won’t agree to provide funds without a warranty that covers the property or excludes the buyer from liability for existing structural issues.
Completed housing structural warranties are available but finding the most appropriate one for your property can be a daunting task, especially if you have no experience.
That’s where we come in.
If you have any queries or concerns, be sure toget in touch by calling 0161 928 8804 or emailing info@architectscertificate.co.uk – one of our experts will be more than happy to help with completed housing warranties!
While they are a popular option for protecting commercial properties, there are far more limitations on a Collateral Warranty. These warranties are a legal arrangement extending an existing contract to include specified third parties, who will then have a direct method of legal recourse if they need to make a third party claim for latent structural defects.
A Structural Warranty on its own tends to be set up by the developer and transferred to the buyer. Any tenant would then have to go through the landlord to address a structural defect. On the other hand, a Collateral Warranty could extend the Structural Warranty contract to include leaseholders as well as the developer and the buyer/property owner.
A Commercial Property Warranty is essentially a first-party policy that can be transferred between parties and invoked without the requirement of proving negligence or liability. It’s the better option for a commercial development project, though you can set up a Collateral Warranty as an addition if you wish – it’s just not advisable on its own without a Structural Warranty.
As anyone involved with construction contracts will know, a Structural Warranty is not the same and does not cover the same conditions as Contractors’ All-Risk Insurance. While a developer may take out a Structural Warranty at the start to later transfer it to the property buyer, the developer or contractor must also have their own CAR insurance in case of unexpected damage or theft.
A Commercial Property Warranty will only cover the correction of structural defects, which the property owner can claim for, and the contractor must also claim for under their own Professional Liability Insurance if they have to pay for repair work. Neither of these insurance policies apply in the event of damage or theft of property or public injury on the building site during construction.
This is why you should have both Contractors’ All-Risk Insurance and a Commercial Property Warranty in place from the start, covering all bases rather than leaving some areas vulnerable.
Not necessarily, but it is highly likely. Most lenders expect a newly built property to have a structural warranty in place when a buyer applies for a mortgage. They’re investing in the property upfront and want to protect their funds against potential losses and devaluation.
On the off-chance that a lender agrees to provide a mortgage loan when you don’t have a new build warranty, they will probably lend a smaller percentage of the property value, and the monthly repayments are likely to be higher.
Always check what the mortgage provider’s definition of new build is before you apply, as they may have some exclusions.
From a legal standpoint, there is nothing that requires the developer of a new build home to provide a new build warranty for a property. However, most mortgage lenders won’t provide finance on a new build without adequate cover.
This minimises the risk of losses by ensuring that financial protection is available to cover the costs of repairing any structural defects found in the property once the buyer has moved in.
For the most part, new build warranties are provided to reduce the risk of losing out on potential buyers who need a mortgage.
Self-builders, renovators and those completing conversions often obtain a structural warranty to protect against latent defects and to satisfy lender requirements. While it may not always be legally compulsory, it is recommended to help with future resale, remortgaging or financing.
Generally, a structural warranty applies to the specific property as it was when the contract began. This covers the property for up to 10 years from completion, so you can claim repair expenses if anything goes wrong that can be traced back to the original construction.
If you make any changes to the structure during this decade, it could invalidate the policy.
This means that work such as structural renovations or constructing an extension on your existing building is outside the scope of the existing warranty, so that part of the building and any areas attached to it will not be covered by your current policy. If the property is already over 10 years old and the warranty has expired, then this shouldn’t be a problem. If you start knocking through walls or converting lofts or garages with a few years left, it may be worth getting a new one.
Along with getting site surveys and planning permissions from local authorities, you must contact your structural warranty provider to discuss your options. If that’s us, then get in touch as soon as possible to find out whether we can amend or upgrade your policy to cover the extension for the remainder of your building warranty, or arrange a new one.
Don’t forget that altering the structure of your home will also impact any other ongoing insurance policies you have on the building. Since most homeowners have two types of home insurance (contents insurance and building insurance), you’ll probably need to update or change your policies to reflect the new elements of the property. This is likely to increase your premiums, too.
As the Appointed Representative of Ten Insurance Services Ltd we can sell any type of building insurance or warranty. Primarily we can provide the ABC+ service, which is a ten year Structural Warranty. We can also provide: Road & Sewer Bonds known as a section 278 and section 38, Insurance Backed Guarantees, Contractor & Sub-contractor Bonds, Water Utility Bonds also known as a section 104.
A Structural Warranty is not the same thing as home insurance, so you do need to have both policies in place. The 10-year Building Warranty only covers structural issues stemming from defective workmanship and materials. This also covers design and land inspection failures.
However, it doesn’t cover ordinary wear and tear, or damage from weather or lack of maintenance. Most mortgage lenders will require a building insurance policy as well, which covers the integrity of the building beyond just structural defects. Banks want to protect their investment as much as you do.
Homeowners should also get a contents insurance policy, a separate type of home insurance which covers the contents of the structure. This means that your belongings are covered in case of fires, floods, accidental damage, or theft, even though this type is not required to secure a mortgage.
Structural warranties can cover defects that arise from issues in design, materials or workmanship, depending on the policy terms. Whether specific design or engineering errors are included will depend on the wording of the individual warranty. For clarity on how this applies to our structural warranty, please contact us and we can walk you through what is and isn’t included.
A structural warranty is designed to protect against structural defects caused by issues with design, materials or workmanship. Whether subsidence or movement is covered depends on the terms of the specific policy and the cause of the issue. To confirm whether your ABC+ warranty would respond to a particular type of structural movement, please get in touch and our team can guide you through what your policy includes.
Yes, it can cover these types of construction and building projects. However, a Structural Warranty is typically used on new builds, so if you’re renovating or extending an existing residential property, you may not need a warranty.
If you’re carrying out a major renovation project, or converting a commercial building into a residential one (like converting an office block into apartments), we’d advise you to take out a Structural Warranty.
For these conversion projects, a mortgage lender may insist that you have a Structural Warranty in place for commercial to residential conversions.
A valid structural warranty can make a property easier to sell, as buyers and lenders often prefer or require a recognised warranty for newer homes. While we cannot guarantee an increase in resale value, a structural warranty can improve buyer confidence and help streamline the conveyancing process
Structural defects are typically issues that affect the stability, load-bearing capacity or structural integrity of the property. Each warranty provider defines this in their own wording. To understand exactly how structural defects are defined under the ABC+ warranty, please refer to your policy documents or contact us and we can explain the definitions that apply to your project.
There’s a lot of responsibility and painstaking planning involved in building your own house. At the very start, you should make a list of all the insurance policies you need to set up, and work through it until all the necessary financial protections are in place – after which you can proceed to apply for funding, if required. While not at the top of the list, a Structural Warranty should still be a priority.
After setting up site insurance to cover the equipment, structure, employees, and other liabilities for the duration of the build, you should make sure your Self-Build Warranty is also in place before the construction work begins. Ideally, you should apply for this policy several weeks in advance.
If you’re looking for a Self-Build Structural Warranty quote, you’re in the right place – this is just one of the many Structural Warranties we offer at ABC+ Warranty. To obtain a quote for your self-build project, please use our quick quote form or full online application form.
You can also call 0161 928 8804 to discuss our ABC+ Warranty, or email any enquiries to info@architectscertificate.co.uk.
Getting a quote from ABC+ Warranty is fairly easy. For a fast estimate, you can fill out our quick quote form with your basic information. However, you should bear in mind that this quote may be liable to change upon providing further specifics that could affect our risk assessment.
For a more accurate quotation, please either fill out our full online application form, or call the ABC+ Warranty team on 0161 928 8804. Our expert staff can go through the details with you to set up a Commercial Structural Warranty, and are happy to discuss the best options for your needs.
Should you have any initial enquiries or follow-up questions about Commercial Property Warranties or any of our other financial products, please give us a call on the number above, or send them by email to info@architectscertificate.co.uk. We always aim to make the process as efficient as we can.
The Council produces a draft Agreement for the developer to include the developers proposals. The developer and their surety for the bond sign the Agreement. The Agreement is then completed by the Council.The agreements are in place to cover developer/contractor failure either by sub-standard works or liquidation of the contracting company prior to completion of the works or adopting the road.
Bridging loans are a type of property finance designed to help borrowers straddle the financial gap between two stages of a development or multiple property purchases, so they are typically short-term loans only. They are intended to be arranged fast to assist with cashflow issues, then paid back quickly once longer-term finance has been secured.
They provide a temporary financial solution to keep projects on schedule, but they tend to have higher interest rates because of their short-term nature. The exact interest rate depends on the circumstances of your project, including the urgency and scale of the loan, but bridging loan interest will be quoted monthly instead of annually.
The way it works is similar to applying for a traditional loan – you first make an enquiry about bridging finance for your situation, receive indicative terms (subject to credit approval and receipt of more detailed information), followed by a decision in principle (subject to valuation and due diligence), then legal paperwork is issued and the loan drawn down at the soonest availability.
Speak to us at ABC+ Architects Certificate to find out how we can help with bridging loans.
Sometimes known as sales period loans, developer exit finance, or finish and exit finance, this type of development financing helps developers to refinance and continue their projects when they have run out of either funds or time to complete their plans.
When the development is nearing completion, development exit finance can help to repay existing loans with another, smaller loan – as the project is almost finished, there is less risk for the lender, so the loan should be available with a lower rate. Like a bridging loan, these funds can be used to settle outstanding costs, release equity, or borrow more to advance to another development.
These are short-term loans that are usually repaid within 12 months or less, often with reduced interest and without exit fees for paying early, helping to improve cashflow.
Development exit loans will be based on the current value of the part-completed project, and applications will require updated details on current loans, the schedule of remaining works, and details of marketing and exit strategies.
Our team could help you find the right development exit finance for your project – contact ABC+ Architects Certificate to make an enquiry.
This type of financing is designed specifically to fund property development projects, and can be used for various types – whether it’s partial or full funding for a small or large scale development, involving construction, refurbishment, or conversion of new or existing buildings.
Developer finance is usually provided as a short-term loan released in stages as the development project progresses, ensuring the funds are available when the developer needs them, so they can complete the project efficiently. Once all work is finished, the loan is typically repaid through the sale of the property or refinancing with a longer-term agreement, like a commercial mortgage.
How long it takes to apply for development finance and how much a developer can borrow depends on factors such as the value of the property, the development costs and timescale, its expected end value, previous experience, and exit strategy for repayment. If all documents are in order and a valuation can be carried out quickly, the process should be streamlined.
Talk to us at ABC+ Architects Certificate to learn more about how development finance works.
As homeowners are required to have home insurance in order to get a mortgage, so are commercial property owners required to have building insurance to secure financial funding. This is not the same thing as a 10-12 Year Structural Warranty, as it covers different types of damage.
While a Commercial Building Warranty offers financial protection pertaining to the structure itself and the land it’s built on, building insurance policies pay out for repairs or replacements for a wider variety of elements in a larger range of circumstances. Even if you already have a Commercial Structural Warranty, you’ll want building insurance as well for the extended protection.
For example, building insurance covers damage from things like fires, floods, severe weather, accidental damage, and theft (which the policy owner isn’t responsible for) – and a Commercial Construction Warranty doesn’t. There’s also contents insurance, which covers equipment, furnishings, and other such interior elements that aren’t included in a Structural Warranty.
If you don’t use the premises for your own business, but lease the commercial property to someone else, then that company will be responsible for their own building insurance and contents insurance.
How we calculate the cost of your contractors’ all risk insurance policy will depend on several factors. These include the scope, location, value and duration of your project. Here are some of the factors that will influence the cost of your policy:
Size of the project – This will indicate the level of risk that’s posed, as large-scale construction projects typically carry an increased amount of risk.
Turnover & wages distribution – The distribution of turnover and wages between various construction activities and the perceived risk that is attached to each of these can impact your insurance premium.
Working at height – More than 6 meters above floor level.
Other factors – Making excavations, working with heat and using industrial machinery.
Several claims – Making several large claims previously with a lack of remedial action can indicate that risks are not being properly managed and will inevitably affect your insurance cost significantly.
You can get building warranties that cover various lengths of time, but we recommend a 10 year structural warranty, as this will give you peace of mind that the cost of any defects will be covered for years to come.
Depending on the provider and level of cover provided, most will provide higher levels of cover during the first few years of the warranty.
This is because, during the first two years, the developer or builder is responsible for fixing any defects. After this, the financial cover will still be available, but the buyer will be responsible for sourcing the work.
It may also be required that you have the property inspected by an insurer regularly to retain the warranty during the life cycle.
It depends on the warranty it supports, but most last 10 years.
On average, it takes 2 to 6 weeks. Our team can streamline the process by providing required documents, including PCCs or warranties.
Typically, a deposit of 5-20% is required. Our network of specialist lenders can work with you even if you have a smaller deposit or complex circumstances.
The cost of a Commercial Property Warranty will depend on factors such as your developer rating, financial status, and the size or sale price of the business development. Your specific quote will be calculated after sharing the plans and technical specifications of your proposed project.
Commercial Construction Warranty providers will usually need to conduct an inspection and a credit check to identify any potential issues with your commercial project. The results will influence the final quote that you will receive and which terms are written into the formal contract.
If you have an existing Commercial Building Warranty but want to carry out refurbishment or conversion works within the period of cover, structural changes can invalidate this first warranty. You may need to update and renew with a new quote, or take out an entirely new policy.
The cost of a Structural Warranty will differ depending on a few factors, like:
- The type of build
- The individual provider
- The stage of development you get a warranty
- The experience of the main contractor/developer
One thing that will immediately make your warranty more expensive is delaying until after the project has started, because inspectors will want to have oversight of the project from the concept stage.
If they’ve not signed off on the drawings or materials, they won’t have the same level of confidence.
ABC+ Building Warranty offers to beat any other genuine quotation that you may have received from another provider, such as NHBC, Premier, LABC, Protek, Advantage Warranty, BLP, One Guarantee or the LABC.
When you apply through our website, you can either submit our quick quote form to receive an indicative quotation as quickly as possible or fill out our longer application form with more details. You can also apply for a quick PCC quote.
The more information you give us about your building project, the more accurate your prospective quote will be. As we don’t use brokers, the process of receiving a quote from us is faster than many other providers who rely on middlemen – and we can offer lower prices without those additional fees.
Of course, the process may take longer if we require more information about your building proposal, or should we need to visit your site to conduct an inspection. Whatever the case may be, we always offer a fair and honest quote, so you’re sure to get a competitive rate with a speedy turnaround.
A PPC only certifies that your property adheres to Building Regulations and has been completed to the legal standard. It’s a cheaper option because it only lasts for six years and provides less coverage than a Structural Warranty, which lasts for 10 years as standard.
Not only does it cover your property for longer than a PCC, but a Structural Warranty also holds the builder immediately responsible for defects in the first two years, and then you can submit claims directly to the policy provider for the remaining eight years. With a PCC, you’d have to go to court to prove their liability.
It’s possible to have both policies at once or to get a PCC initially and then upgrade to a Structural Warranty later, but premiums will be higher the longer you wait.
No.
Under UK planning and building laws, there is no requirement to get a Structural Warranty.
But, having said that, the majority of lenders will expect you to have one before they’ll sign off on a mortgage.
It can also make it extremely difficult to sell a house that’s under 10 years old without a Structural Warranty.
This is typically the case regardless of whether you’re building property for commercial or residential purposes.
If you’re building commercial property on finance, lenders will usually require you to have a Structural Warranty in place before the start of the project.
Other than employers’ liability insurance, it’s not legally mandatory to have contractors’ insurance. However, this doesn’t mean it’s not necessary to have some sort of comprehensive cover for your construction projects.
As you’re aware, the construction business possesses plenty of risks, and the last thing anyone wants is to foot the bill for costly repairs and replacements in the event of damage or theft.
Not only does having contractors’ all risk insurance protect you, but it’s also likely to get you more business. Clients may be unwilling to work with you if you don’t have the security of a CAR policy, even if it’s not a contractual obligation.
Many parties that you’ll be working with are likely to request proof of your insurance status before agreeing to a contract, so it’s best to be prepared for all eventualities. This level of professionalism can also help to boost your reputation as a reliable contractor.
The payment terms for your contractors’ all risk insurance policy will depend on your contract. There are different types available according to the coverage you need, whether that’s an annual policy or a separate policy for a specific project.
You can purchase annual contractors’ all risk insurance every year to cover all work that you undertake during that year, with a maximum value per project. This is usually the easiest solution for contractors who work on multiple projects every year.
Alternatively, project-specific contractors’ all risk insurance might be the better option for a larger-scale venture, especially if it involves multiple parties on a joint policy. The only issue is that these tend to have a limited timeframe.
In some cases, it may be possible to extend your coverage if the project overruns past its original deadline. Whichever approach you take, you must always set up contractors’ all risk insurance before any work commences, to avoid issues with claims.
Yes – structural warranties and home insurance policies are not the same. Since they each cover different things, you’ll need both a structural warranty and home insurance for an adequate level of protection. You shouldn’t choose one or the other – many lenders expect you to have both.
Your new build warranty will cover the main structure itself against latent defects caused by poor design, workmanship, or materials. It won’t cover the building or its contents against damage or loss resulting from bad weather, theft, or fire, for example, which is where home insurance comes in.
Home insurance, specifically building insurance, will cover your property against types of damage other than latent structural defects. Another type, contents insurance, is usually taken out after you’ve moved your belongings in. They won’t cover structural issues, so you need a warranty, too.
The future for the Build-to-Rent market looks promising, with continued demand for rental units and a diversification of the sector.
Other reasons why the BtR sector looks positive for the coming years are:
- Sustainability – Build-to-Rent projects are expected to focus more on sustainability in the near future, which may include designing buildings with longevity in mind.
- Diversification – Build-to-Rent projects are expected to diversify by reaching new markets, including homes for seniors.
- Affordability – To sustain growth, the Build-to-Rent must focus on offering affordable housing for tenants.
Our plans are designed to be cost-effective. Any fees or interest will be clearly outlined in your agreement.
As Structural Warranties are specific to the structure they were originally taken out for, the policy cannot be transferred to another property if you move house. However, a Structural Warranty can be transferred between owners – so, if the property changes hands, the new buyer takes it over.
In many cases, developers are the first to set up the Structural Warranty, which transfers to you when you buy the home. The standard warranty period is currently 10 years, increasing to 15 years under the Building Safety Act 2022 – so the warranty will stay with the structure for this long from the completion certificate date.
This means that if you move out and sell the property during this time, you can sign the warranty over to the buyer along with it. Homebuyers are more likely to find your house promising with a transferrable Structural Warranty, because they probably require one to get a good mortgage, like you might have when you first bought the home.
However, if you don’t sell the property within the warranty term, the policy will expire.
Primarily, we do everything diligently and up front to make sure that you don’t have any major structural problems in the first place. Providing a PCC is more about prevention than cure. We don’t personally resolve any problems after the completion and issuing of the consultant’s certificate however, we do provide you with an independent dispute resolution solution free of charge. The Professional Consultants Certificate* will certainly fulfil all of your financial and funding requirements, but it is NOT an insurance backed, latent defects insurance like our ABC+ 10 year Structural Warranty is.
Similar to a mortgage, the cost of a Self-Build Warranty is based on the size of the property and its features. The bigger the home, the higher the premiums – and the same goes for features such as basements and flat roofs, which can increase the risk of latent structural issues.
Any warranty provider will inspect and evaluate the property before offering you a final, fully informed quote. The many factors that can affect your Structural Warranty premiums include:
- The size, location, and estimated value of the build
- Construction methods and materials
- Experience/portfolio of the builder/developer
- Your financial status (e.g. income, debts)
- Stage of completion when applying
The more thorough your documentation and stable your situation, and the greater the reliability of the materials and methods used, the better. It’s also best to apply for a Self-Build Warranty before construction starts, so we can carry out inspections from the very beginning. If you put it off, the price will continue to increase for every stage of the build, so it’s worth applying as soon as possible.
When you take out a self-build mortgage to build your own house, the bank will release partial payments either before or after each stage of the build. An advanced mortgage allows you to receive the money first to fund each stage, while an arrears mortgage requires paying for each part of the build yourself. You’ll then receive reimbursement from the bank once each stage is completed.
Stage payments make it easier for lenders and insurers to manage the build properly, reducing the risk of defective work or other mistakes along the way. It can be more difficult to get a self-build loan than a standard mortgage, since lenders can’t be sure of the quality of the work if it isn’t carried out by established professionals, which is why it’s helpful to have a Self-Build Structural Warranty.
Submitting proof of this policy – along with your other documents detailing site plans, permissions, and design and construction contracts, etc. – should improve your chances of getting a mortgage.
Just like investors, there are plenty of benefits for tenants regarding Build-to-Rent, such as:
- Wider demographics – The target demographic for Build-to-Rent schemes is young professionals between the ages of 25 and 34, but they can appeal to the family market, too.
- High-quality facilities – Build-to-Rent properties have a variety of high-quality facilities that are maintained regularly.
- Everything under one roof – the community-oriented design and abundance of amenities mean that BtR residents can work, live, and play all under one roof.
- Flexible design – Build-to-Rent units can be designed to attract different types of tenants, from young workers to families.
Of course, the contractors will want to limit their liabilities under the Collateral Warranty. They normally do this by including ‘no greater duty’ or ‘equivalent rights defence’ clauses. These specify that no duties are owed other than those mentioned and that the defending party can use anything available in the contract against a warranty claim. They’ll also try to limit what can be claimed. Such clauses can also include financial caps on the warrantor’s liability.
Normally, the third party is entitled to recover the total losses from one contractor, who is then responsible for recovering anything above their ‘share’ from the other liable parties. With a ‘net contribution’ clause, the amount that can be recovered from one party is limited to their ‘share’.
These can be a hard sell during warranty negotiations, as there is always a risk that a contractor could go out of business and no longer be liable, leaving the other parties to cover the claim costs. Contractors may also request to limit claims to what their professional indemnity insurance covers.
For any more information, or some help with Collateral Warranties, don’t hesitate tocontact us.
While it is typically used by property investors and landlords, bridging finance could be an appealing option for anyone who needs to borrow money quickly to fund a property purchase or refurbishment – bearing in mind that the loan needs to be paid back fast, too.
Common reasons to take out a short-term bridging loan include purchasing and/or renovating investment properties for redevelopment, expanding property portfolios in advance of long-term mortgaging, and buying a property at auction. Bridging loans can be especially useful when funds are needed to buy a second property when a current property has yet to be sold.
This type of finance can be used for most kinds of property development – whether it’s a new-build or older building, self-build or commercial development, a light refurbishment or full conversion. As long as there is a clear exit strategy for paying off the loan within the specific term, such as refinancing later on, there should not be too many restrictions on using a bridging loan.
Contact the ABC+ Architects Certificate team to learn more about bridging loan terms.
As the name implies, development financing can only be used to finance developments – it must be used specifically for the property development costs applied for, such as land or property purchase, construction material and labour costs, infrastructure services, etc.
Developer finance can generally be raised against most types of property development, including commercial, residential, and mixed-use. Properties can be new build or renovations, for sale or for rent – but definitions of refurbishment may vary from one lender to another, with different limits available for heavier renovation.
Traditional development finance requires standard construction methods, like brick-and-block or steel and timber frames, but alternative construction methods like MMC (Modern Methods of Construction) – such as modular housing – may be considered.
Contact us for more information on how you can use development finance with us at ABC+.
The documents required can vary depending on whether the project is pre-construction, mid-build or completed. Typically, details such as drawings, specifications and structural information are needed. For a full list relevant to your project, please get in touch and we’ll confirm exactly what documentation is required for your warranty quotation and application.
Most Collateral Warranties follow a standard format, but we can craft bespoke Collateral Warranties if required. Generally, a Collateral Warranty will contain key clauses like:
- Consideration – something of value that the party is not already entitled to in exchange for contractual promises.
- Principal covenant – the subcontractor/consultant warrants that they have performed their duties in compliance with the underlying contract.
- Step-in rights – allowing the beneficiary to ‘step in’ to the contractor’s place and take over the project if they’re unable to do so.
- Copyright – giving parties the right to use information generated by the project.
- PI insurance – ensuring that the subcontractor/consultant has professional indemnity insurance for the full duration of the warranty.
- Liability period – specifying the warranty length (12 years if executed as a deed and 6 years as a regular contract).
- Assignment – setting restrictions (if any) on the third party’s abilities to claim under the warranty.
For the principal covenant, it’s important to note that this is only as strong as the terms specified in the original appointment. If it doesn’t explicitly state their duties of care, this will limit the warranty.
Similar to other Structural Warranties, a Build-to-Rent Warranty covers latent structural defects for 10-12 years after the registered completion of the construction project. The first 2 years are the defects insurance period, where the builder must fix any structural issues that occur.
From this time onwards to the end of the 10-12 years, known as the structural insurance period, the warranty provider will cover the costs of repairing structural damage following a successful claim, rather than the builder being directly liable for carrying out the repairs.
Standard structural defects insurance may also include contaminated land under its cover terms. Depending on your requirements and eligibility, and the specific warranty contract you’re offered, it may be possible to add further extensions to cover additional elements such as builder insolvency, mechanical and electrical inherent defects, and loss of rent.
As the developer and/or owner of a commercial property, this type of Latent Defects Insurance protects you financially against potential structural defects. Fixing structural failures can be costly, which is why it’s better to be safe than sorry and secure a Commercial Structural Warranty.
This insurance policy can take the place of a Collateral Warranty, simplifying the process for contractors. It covers the repair of structural defects or damage within the first 2 years, and pre-existing contamination or structural failures for the 10-12 years after completion.
However, it will not cover general wear and tear, weather or accidental damage, or neglect – including lack of maintenance and security. This applies to properties left unoccupied and unsecured, and instances of vandalism or theft where force wasn’t used to gain access.
Getting a Structural Warranty for your project will cover you against a number of issues that could arise in the future, such as:
- Costs to fully or partially rebuild a building as a result of structural defects, and the costs to fix any defects within a property that are attributed to defects in the design and build of a property, or any defects discovered in the materials used for the projects
- Costs to rectify damage caused by water as a result of problems with the design, build or materials used in a project
- Costs associated with fixing issues caused as a result of the drainage system built as part of the construction project
- Insolvency of the developer (if requested at the quotation stage)
- Defects insurance for a period of up to 24 months after practical completion
- Structural insurance after 24 month have elapsed from practical completion
- Contaminated land cover
- Alternative accommodation costs
- Fees
- Removal of debris
If you would like to find out more information about what structural warranty includes read our guide here.
As well as this it can also be used to cover the following (depending on the individual provider and policy):
- Deposit protection in the event the developer goes bankrupt
- The cost of removing contaminated land from the development plot
- Cover in case the property (or parts of it) were not built in proper compliance with buildings regulations
A Structural Warranty covers defects in the building and design of a construction project, as well as any defects uncovered in the materials used in the build.
An insurance provider will usually carry out scheduled checks of the build at different stages to inspect for any defects.
While the stages when these technical audits are carried out can differ, they’re usually done during the laying of the foundations, the building of the main structure, the pre-felt and batten of the roof, the pre-plaster of any interior walls, and, finally, once the project is complete.
Inspectors will be looking for any signs of degradation (such as cracks in the walls or structural issues with the foundation) to ensure the structure will be safe.
Here’s what a structural warranty covers:
- Costs to fully or partially rebuild a building as a result of structural defects, and the costs to fix any defects within a property that are attributed to defects in the design and build of a property, or any defects discovered in the materials used for the project
- Costs to rectify damage caused by water as a result of problems with the design, build or materials used in a project
- Costs associated with fixing issues caused as a result of the drainage system built as part of the construction project
- Defects insurance for a period of up to 24 months after practical completion
- Structural insurance after 24 months have elapsed from practical completion
- Alternative accommodation costs
- Fees
- Removal of debris
A structural warranty can also cover (depending on the individual provider and policy):
- Deposit protection in the event the developer goes bankrupt
- The cost of removing contaminated land from the development plot
- Cover in case the property (or parts of it) were not built in proper compliance with building regulations
Repairs or issues that arise from faulty workmanship or materials if the original contractor is no longer around to fix them.
New build warranties are issued to protect buyers from the costs of fixing structural defects caused by faulty materials or poor workmanship during construction.
They don’t cover damage from general wear and tear or damage caused by weather and natural events. They specifically cover structural defects caused during the building process.
You might be able to get cover under the new build warranty for damage caused by dampness or condensation building up in the home, but typically this will only be if it’s probably due to the developer failing to comply with building standards.
A new build warranty also won’t cover any damage that occurs as a result of the buyer failing to properly maintain or look after the building.
A Structural Warranty will protect you from risks caused by defective work or materials, but there could be building issues that arise after a project is completed that won’t be covered by a warranty.
These include:
- Alterations/change in colour/consequential loss
- Defects in existing work/humidity/Japanese knotweed
- Maintenance and use/personal injury/prior knowledge of defects
- Radioactive contamination, chemical, biological, biochemical and electromagnetic weapons
- Settlement/sonic bangs/special perils/subsidence
- Toxic mould/vermin/war and terrorism risks
- Water table/wear and tear/wilful acts
Any latent defects found in the first two years after construction is completed are also not covered.
This is known as the Developer Liability Period.
During the first two years of your coverage, it is the responsibility of the developer/contractor to rectify defective workmanship.
Once the property is built, the warranty is split into two periods – the defects insurance period, which covers the first two years, and the structural insurance period which covers anywhere between three and ten years.
During the first two years, if your buyer experiences problems like windows letting in rain because they aren’t sealed properly or your heating not working because of faulty pipes, you will be responsible as the builder for fixing them.
For the next three to ten years, the property developer is only responsible for major structural issues with the completed property.
This includes foundations, the external render, roofs, ceilings, chimneys, and load-bearing parts of the floors – anything smaller defects will be the buyer’s responsibility at this point, like problems with the gutters for example.
Your warranty won’t cover natural wear and tear, weather damage, or any problems caused by poor maintenance.
To ensure that your self-build construction project is progressing in compliance with the building plans, permissions, and regulations – thereby minimising the risk of defective work – part of providing a Structural Warranty includes conducting site inspections at these key stages:
- Excavation of foundations
- Laying of the ground floor
- Construction of walls and roof
- First fix (before plastering or internal fittings)
- Second fix (after installation of fittings)
- Pre-handover (completion)
During these regular site inspections, a chartered surveyor will visit the site of the development to complete a professional assessment. This survey will monitor whether the build meets the required technical standards set by the insurer, the local authority, and national regulations.
This qualified audit should then identify any problems as early as possible, preventing them from becoming latent defects and allowing the construction team to rectify the issues quickly.
Records of each site survey are carefully maintained in a dedicated folder, with electronic copies of the report provided after every site visit. You can use these as supporting evidence for claims.
Once a structural warranty has expired, the cover under that policy ends. Any defects discovered after the warranty period would not usually be covered and may need to be addressed privately. If you are unsure when your warranty expires or what period applies to your project, please contact us so we can check your documentation and advise you.
At the end of the construction project, the inspector will carry out a final inspection before signing off on the warranty.
If everything is completed to the required standard, you’ll get a completion certificate, and a copy of this will be sent to the warranty provider with the valuer’s report.
Once the warranty provider has carried out their final checks and is happy, you’ll get your final certificate, which will start your 10-year Structural Warranty guarantee.
A structural warranty applies to the specific property only, not the owner or policyholder. Your new build warranty will last for 10 years from the date on the property’s completion certificate, so if you were to sell the home and move out before that, the policy would transfer to the new buyer/owner.
Having this financial protection can make your property more attractive to potential buyers, but this might not be a concern if you don’t plan to sell within the next decade.
The policy term also doesn’t renew when it transfers to a different person, so they can’t expect it to last for another 10 years.
Bear in mind that if you carry out renovations that affect the property’s structure, this can invalidate your original warranty. You may have to contact us to reassess the property and discuss whether we can extend or upgrade your policy to cover the new work for the remainder of the term.
Structural warranty providers normally require stage inspections throughout the build. This allows the surveyor to review construction quality and ensure the works meet the required standards. The exact inspections needed will depend on your project’s type and stage. If you would like to understand what inspections apply to your build, please provide your project details and we will guide you through the process.
AÂ PCCÂ is a legal document confirming that your project has been completed satisfactorily, monitored by a professional and signed off by a qualified architect or surveyor.
It states that the construction work conforms to planning permissions, building regulations, and other associated contracts.
Since PCCs are often issued by architects, they are sometimes referred to as Architect’s Certificates. Before the UK Finance merger took over the Council of Mortgage Lenders, they were also called CML Certificates. However, the current appropriate name is the Professional Consultants Certificate.
It’s considered a more affordable alternative to a Structural Warranty, but it’s important to note that a PCC is not a latent defects insurance policy. A Professional Consultants Certificate provides limited legal cover for defect liabilities, but these certificates are necessary to secure mortgages.
A Sewer Bond can also be a requirement by a local authority. Also known as a Section 104 agreement between the owners of a private sewer (usually a developer) and the relevant water authority whereby, subject to the owner constructing the sewer to an agreed standard and maintaining it for an agreed period the water authority will adopt it and it will thereafter become part of the public sewer system.
Sometimes known as Latent Defects Insurance, it is a construction insurance policy that protects you against structural defects in a new build, conversion, or renovated building.
This means that if your building develops problems due to poor workmanship or materials, the structural warranty will provide cover, ensuring you receive financial compensation to help cover the costs of structural damage and repairs.
The Structural Warranty usually lasts 10-12 years from the date on the Building Control Completion Certificate, whether it’s for social housing, mixed-use projects or commercial sites.
Under the Building Safety Act 2022, the liability period will be extended to 15 years for claims relating to faulty design or workmanship on new buildings that have rendered the property unsafe for human use or habitation as a result of latent defects.
Most mortgage lenders will not release funds without an approved Structural Warranty in place, to protect their investment as much as yours. This can delay property sales and purchases, so you should make sure a suitable Building Warranty is in place as early as possible.
Structural defects can become apparent at any time in the years after construction finishes. It’s best to have at least 10 years of precautionary cover to help you with the expense of fixing such issues.
An Insurance Backed Guarantee supports the original contractor’s warranty. If the contractor goes out of business, the IBG ensures the guarantee remains valid.
Getting a 10-year structural warranty for your building project will ensure that you’re covered against a number of problems that could occur in the future. These include:
- The cost of fully or partially rebuilding as a result of structural defects. This includes the costs of fixing any defects within a property that arise as a result of defects in the design and building of a property. It also includes any defective materials used for the building work.
- The cost of rectifying damages caused by water egress as a result of problems with the design, building or materials that were used in a project.
- Any costs associated with fixing issues that are caused as a result of the drainage system being built as part of the construction project.
- Insolvency of the developer (only if this is requested at the quotation stage).
- Defects insurance covering 24 months following practical completion.
- Structural insurance after 24 months have passed following practical completion.
- The cost of alternative accommodation whilst repairs are conducted.
- Contaminated land cover.
- Fees.
- Removal of building debris.
ABC+ is our unique, trademarked system that enables the linking of the services of our insurer to the professional surveying services of Architects Certificate. We are a team of Specialised Building Surveyors providing structural certification for new-build or converted older properties. Since 1989 our structural certification has been accepted by banks and building societies. You can either start with our PCC service and upgrade at any time to our ABC+ 10 or 12 year Warranty if later required. Alternatively, you can commence immediately with our ABC+ 10 or 12 year Warranty if preferred.
Whilst it covers you for damages caused by things that are out of your control, the main purpose of general liability insurance is to cover your business against claims made by members of the public. This could be a claim for injury, property damage or illness caused by your company’s work.
For example, if a member of the public were to be hit by rubble falling from your building site, general liability insurance would cover you against this.
And whilst your general liability insurance would cover damage to a hardwood floor that was caused by an employee dropping some equipment, your contractors’ all risk policy would cover damage to the floor caused by a trespasser.
In short, general liability insurance protects you only against claims made against your business. On the other hand, all risk cover protects you against claims made against your business, damage to the structure itself, and loss, theft or damage of your equipment and building materials.
Though they obviously sound similar, development finance and development exit finance are not the same thing. The former provides funding for construction or renovation projects from the start of the development, while the latter is used to finance the move from one stage of finished or almost complete development plans to the next.
Development finance loans are calculated to cover various stages of the development over a longer term, while exit finance typically provides a smaller short-term loan that can be applied in a few different ways. For example, to repay the initial development loan or allow an early equity release, or as a type of bridging loan to cover the gap between the end of the development phase and the property sale.
Here at ABC+ Architects Certificate, we can assist with both types of finance, as well as bridging loans. If you are specifically interested in development exit finance, please visit our dedicated page for more information on developer exit finance.
It’s a payment solution allowing developers to pay for warranties in instalments rather than upfront. ABC+ offers this to support cash flow.
They offer tailored funding for non-standard projects, self-builds, or those that don’t meet high street criteria. ABC+ works directly with these lenders.
A Collateral Warranty isn’t the same as a Structural Warranty because the former is a sub-contract, whereas the latter is a contract itself. Collateral Warranties can last up to 12 years rather than 10 years, and require the other parties to have professional indemnity insurance for this duration.
The Collateral Warranty will extend the responsibilities of an original contract to cover another party or several other parties involved in the construction. This secondary contract might limit the number and type of claims you can make, and you’ll need to prove their negligence for any claim.
On the other hand, a Structural Building Warranty doesn’t require maintaining professional indemnity insurance or proving negligence or liability to succeed in a claim. These contracts shouldn’t have any limits on Structural Warranty claims, other than the relevant expiry dates.
A fixed rate stays the same for a set period, giving predictable monthly payments. A variable rate can go up or down depending on the lender’s base rate, affecting your repayments. ABC+ can advise which suits your situation.
A PCC is a certificate of compliance which provides professional indemnity insurance for six years. This is a confirmation that the construction meets all the necessary standards. The consultant who issues the PCC will be held liable if found to have been negligent.
However, the PCC does not guarantee financial compensation in the event of a structural defect. If you want the security of being able to make a direct insurance claim, you’ll need a 10-year Structural Warranty. You can have both at once since they do different things.
Many smaller builders and developers opt for the PCC because it’s cheaper, but if you’re applying at the point of completion, it will be more expensive. It’s a personal choice whether to invest in more protection with a Structural Warranty, as they aren’t compulsory – even if banks require them.
The main difference is the time each one lasts. While an architect’s cover lasts for six years, a full Structural Warranty will cover you for 10, sometimes 12 years.
Plus, if you discover a defect while using an architect’s sign-off certificate, it means you’ll have to sue the architect and claim against their professional indemnity.
If you have a Structural Warranty, you’ll have an insurance policy which you’ll be able to claim against in the event of a defect.
Also, a Structural Warranty is issued by an independent surveyor who assesses that the work meets the higher industry standards you need to satisfy the warranty provider. An architect’s certificate is a sign-off that the work has met a minimum standard.
In some circumstances, a third party may require a Collateral Warranty for a contractual link to the builder/consultant’s main contract. An employer might want a direct link to a subcontractor, or someone who provides funding for the contracted work may want to protect their investment.
When you need to extend a contract to establish a contractual relationship and the associated legal rights and responsibilities, then a Collateral Warranty can run alongside the original contractual agreement. It’s usually taken as a security measure to ensure that all obligations are fulfilled.
Without a Collateral Warranty, third parties may find the risk too great to work with the original contractors. This could mean losing out on funding and delaying stages of the project, which nobody wants. The Collateral Warranty will expressly confer rights to other individuals and businesses.
If you need to take out a loan to fund construction of the property, then you’ll need a PCC before the lender will release the funds. This especially applies to stage payments, where the bank releases the money in instalments at key stages. Your PCC provider can supply interim certificates at each stage.
Even if you want a lump sum loan, you’ll still need legally valid proof that your purchase is covered against financial risks. The PCC ensures that the construction has been effectively monitored and properly completed, and that the consultant is liable if something goes wrong in the next 6 years.
Should you intend to sell the property on within 6 years, or rent it out with a Buy-to-Let mortgage instead of living in it yourself, you’ll still need a Professional Consultants Certificate. It offer lower costs initially, but you should upgrade to the more comprehensive Structural Warranty later on.
While development finance offers a larger source of funding for the entire project, it can be more expensive – so switching to development exit finance offers a cheaper alternative when the bulk of the project has already been completed.
Whether the project has run over budget or schedule or the original loan term is about to expire, developer exit finance can be beneficial in extending the sales period to allow you to finish the project to the most marketable standard and secure the best possible sales price – and some lenders allow developers to retain a portion of the first sale proceeds to help with cashflow management.
Additionally, if current finance costs are too high, development exit finance provides a way to reduce borrowing costs with lower rates, which helps to protect your margins when sales are slow. It also provides a route to release capital that allows you to move on to your next development before the current project is completed and sold, so you can stay on schedule as closely as possible.
After all, construction projects do not always go to plan, and developers may find themselves needing a quick finance solution to stay on track. If this applies to you, get in touch with ABC+ Architects Certificate to discuss exit finance options today.
Ideally, you should have a Structural Warranty in place before any building work takes place. This ensures that the project has been supervised through every stage of development and will cover you comprehensively.
However, it is possible to get a Structural Warranty once the building work has started, but this will be more expensive.
If you don’t have a Structural Warranty in place, we’d recommend you get one as soon as possible.
If your property is for residential use, it can make it nearly impossible to sell or secure a mortgage against a building without a Structural Warranty.
This is because many banks require one to assess the integrity of the building before they release any funds, at least for buildings under 10 years old.
While it’s possible to get a Completed Property Warranty after the construction is already finished, it’s not advisable to wait that long. If your mortgage provider needs up-to-date reports to release your funds, you’ll have to cover the upfront costs yourself before the bank can reimburse you at the end, which is far too expensive for most people to manage.
It’s best to secure a Self-Build Warranty as early as possible so that regular and comprehensive checks can happen right from the beginning. As soon as you have acquired the land, and all the planning documents and cost calculations are organised, you should start looking for a suitable Structural Warranty policy to cover your self-build development.
As a general guide, it’s advisable to purchase a Self-Build Structural Warranty around 2 to 3 weeks before works begin. The Chartered Surveyors can then analyse your technical plans, and carry out staged inspections to identify any issues before they can cause problems later. If you do wait until after completion, you’ll need a warranty before moving in.
The trade body UK Finance, previously the Council of Mortgage Lenders (CML), has a lenders’ handbook that lays out requirements for transactions like mortgage loans. This includes a list of regulated mortgage lenders in the UK, approved by UK Finance for compliance with their rules.
Our policies are also compliant with CML/UK Finance, so our Structural Warranties are accepted by many of these approved lenders. If you include your ABC+ Structural Warranty in your mortgage application file, it could improve your chances of securing a better deal with one of more than forty lenders on our own approved lenders list. This includes most of the high street banks in the UK.
If you intend to apply for a mortgage with a lender that isn’t on our list,get in touch with us first to discuss this. We can contact the lender ourselves to request approval and add them to our list.
Our Professional Consultants Certificates are accepted by 95% of lenders in the CML/UK Finance Handbook. For more information, you can view our list of almost 100 lenders who accept our CML certificate, including the following major high street banks and building societies:
- Aviva
- Bank of Scotland
- Barclays
- Bradford & Bingley
- Clydesdale Bank
- Halifax
- HSBC UK
- Lloyds Bank
- National Westminster Bank (NatWest)
- Nationwide
- Sainsbury’s Bank
- Santander UK
- Scottish Widows
- Tesco Bank
- Royal Bank of Scotland (RBS)
- TSB Bank
- Ulster Bank
- Virgin Money
- Yorkshire Bank
As you can see, the majority of mainstream mortgage lenders accept a Professional Consultants Certificate. For your own peace of mind, you should contact the lenders for direct confirmation.
Developers, self-builders, renovators, and anyone working with unique builds or needing a PCC or warranty included in their finance.
A Commercial Property Warranty will offer protection for any type of building used for commercial purposes, taken out by the developer or owner of the property. This will allow them to make a financial compensation claim against the builders and architects in case of structural flaws.
If you’re wondering what counts as a commercial property, it can be any new-build, conversion, or mixed-use development that’s intended for business use. Sectors like retail, hospitality, education, and industrial manufacturing are just some of many that could benefit from this type of cover.
The most common projects where a Commercial Building Warranty is used include:
- Office blocks
- Shops or supermarkets
- Restaurants or pubs
- Hotels or leisure facilities
- Schools or universities
- Private healthcare
- Warehouses
- Industrial estates
From sports centres to student accommodation, cafés to care homes, there are many types of commercial properties that require tailored Structural Warranties. Without this guarantee of protection, it can be difficult to secure financial investment for commercial construction projects.
Bridging finance is typically available for individuals, companies, and trusts based in the UK. This loan may be right for you if the property you require funds for is not currently in mortgageable condition, or you need the funds much faster than traditional lenders can provide them.
Whatever the case may be, the eligibility criteria for bridging loans tends to be more flexible than traditional long-term facilities – but an applicant’s bridging loan eligibility depends on a range of factors, such as the type of property, loan to value, and exit strategy.
While specialist lenders can tailor their requirements to suit individual needs to an extent, they may still have an eligibility framework that your enquiry must fit within. For example, there may be minimum and maximum loan amounts available, limited timeframes for repayment, and higher interest rates dependent on the applicant’s credit history.
Such information should be communicated to you when you first make an enquiry, as we can only proceed with your application if your circumstances are suitable for the bridging loans we facilitate.
The eligibility criteria for developer exit loans can vary depending on the type of property, client, and project circumstances. Generally, any individual, partnership, limited company, offshore company, or trust can apply for development exit finance.
You do not need to be an experienced developer to apply, but lenders will take into account the amount you want to borrow, the development type and location, and the reasons for needing exit finance. You will be expected to provide details of the:
- Borrower – whether it is an individual or company (including directors and shareholders)
- Security – the value and nature of the security being provided
- Schedule – breaking down the outstanding works and costs
- Documentation – e.g. planning permission, warranties, practical completion certificates
- Current finance – terms and conditions of existing development finance
Usually, properties in progress must have been completed at least to the stage of being wind and watertight to be accepted.
Every development project differs, but if you want to secure a development exit loan as an exit strategy for current financing and to boost your project funds, you can reach out to us at ABC+ Architects Certificate. We can help you decide which development exit finance option is best for your particular situation and assist with the application to achieve a swift solution.
The main reason that you should invest in a 10-year structural warranty is so that you will be able to sell your property once the building work is completed. Whether you’re a homeowner or a developer, having this insurance in place is the best way to ensure that your investment is protected. Here, we explain how each of our types of clients would benefit from investing in a 10-year structural warranty.
Builders
From renovations and conversions to new projects, ABC+ 10-year structural warranties are designed to protect against all potential risks.
Housing Associations
ABC+ have many years of experience working on large-scale housing association projects, making us your first choice for industry expertise and professionalism.
Developers
A 10-year structural warranty will help you to build your development efficiently and securely, whilst also developing consumer confidence in your company.
Self-Builders & Homeowners
Our personal service and industry expertise make us the ideal choice for structural warranties for self-builders and homeowners.
Anyone having major work carried out, especially by small or sole traders should consider an IBG for peace of mind.
A Professional Consultants Certificate can only be issued by a qualified consultant, officially approved and listed in the CML Handbook (now the UK Finance Mortgage Lenders Handbook). Luckily, we are one such trusted company, able to provide standardised surveys and certificates.
Click these links to view our examples of the standard PCC format in your area: England, Wales, Northern Ireland. These certificates ensure legal liability for 6 years, backed by professional indemnity insurance. The certificate will be transferable to future owners within those 6 years.
Please remember that a PCC is not a warranty – for more comprehensive cover, consider our ABC+ Structural Warranty. We also give you the option to upgrade from a PCC to a Structural Warranty if you prefer. Click here to get your free no-obligation quote for a Professional Consultants Certificate.
If you’re looking for a Build-to-Rent Structural Warranty provider with the technical expertise to support your project, then ABC+ Warranty could be the answer. We can offer long-term Structural Warranties for a variety of property types and uses, helping to mitigate risks and provide asset protection from land acquisition to completion and beyond.
We also offer a range of other services that you might find helpful for your build-to-rent project, including Road and Sewer Bonds, Building Control advice, Technical Auditing, and Branded Hoarding. Our Chartered Surveyors can conduct thorough inspections and provide detailed reports throughout the construction of your build-to-rent property, ensuring that all works comply with Building Regulations, therefore safeguarding your investments in the property.
Our Structural Warranties are accepted by a range of CML-approved lenders (Council of Mortgage Lenders), so why not contact us to see what we can do for you? You can either apply online for a quick quote or get in touch with us by phone or email to secure a competitive offer.
ABC+ Warranty is our warranty product, and it offers some of the best value for money on the market. We do not require membership fees or holding bonds, and we can issue our certifications within hours, not weeks, giving you comprehensive protection as soon as possible.
Our 6-Year CML Certificate, known as a UK Finance Professional Consultants Certificate, gives you the option to upgrade to a 10-Year Building Warranty – helping you to save money with a PCC until a lender requires you to have a Structural Warranty.
Through key inspections, our chartered surveyors perform their due diligence to ensure that latent structural defects won’t occur down the line on completed properties. However, even the best builders can’t always guarantee that nothing will happen, so it’s worth upgrading to a 10-year Structural Warranty.
Many approved lenders accept our PCC and 10-year Structural Warranty for a range of development types, so you can rest assured that your paperwork will be in order. Get an indicative QUICK QUOTE in minutes, or call 0161 928 8804 to discuss your building project.
Not every self-builder will have experience in construction. Without in-depth knowledge of Building Regulations and structural integrity, you might not realise that others are making technical mistakes when constructing your self-build property. If you don’t know what to look out for, you should entrust an expert surveyor like those on our team to do it for you.
Most Structural Warranty claims are a result of poor workmanship that wasn’t noted at the time, which is why extensive auditing throughout construction and Latent Defects Insurance extending past completion are so important. No doubt you’re investing a lot of money into your dream home, so you don’t want to incur financial losses if a structural element fails later on.
Aside from the security and peace of mind that having a Self-Build Structural Warranty can give you, many lenders will require this policy to be in place before agreeing to loan you anything. If you’re relying on a self-build mortgage with stage payments to fund the project, then you’ll need this warranty. A Professional Consultants Certificate(previously known as an Architect’s Certificate) won’t be enough.
Even if the buyer of a new build pays in cash, it’s still advisable to get a warranty in place.
This is because if they ever come to sell the property, the new buyer may be reliant on a mortgage to fund the purchase, and if there’s no structural warranty in place, it could cause delays or result in the purchase falling through.
Having a structural warranty provides reassurance to lenders that the property is financially covered for any defects and reduces the risk of them losing money if problems are discovered.
These building warranties are usually taken out by the builders or developers to cover the new owners.
Whilst all might seem well immediately following the completion of your building work, structural defects can be made evident at any time in the years after the construction work finishes. It’s therefore best to have at least 10 years of structural warranty cover to assist with the expense of fixing any issues.
Whilst there is no requirement by law to obtain a structural warranty, the majority of mortgage lenders won’t sign off on a mortgage without one.
This will cause a delay in the sale of the property. Additionally, not having a structural warranty in place can make it difficult for you to sell a house that’s under 10 years old.
Your Building Warranty is an important piece of insurance when undertaking any type of construction and building project, so you need to get it from a trusted source.
At ABC+ Warranty, we’ve worked on tens of thousands of residential and commercial property projects throughout the UK. As a structural warranty provider, we’re amongst the most cost-effective on the market.
Unlike other providers, we don’t require membership fees or holding bonds and our certification can be issued within minutes.
Get our indicative QUICK QUOTE in minutes orcontact us to discuss your building project by calling 0161 928 8804.
We have been recognised as the best architect certificates and structural warranty company in the UK. We monitor and certify the construction of thousands of residential and commercial properties all across the country.
Our surveying history began over 30 years ago and, since then, the team has provided tens of thousands of satisfied clients with their award-winning services and products.
Our customers can rest assured that they’ll receive high-quality support that meets their needs and doesn’t burn a hole in their budget.
So that you can organise your finances more effectively, we’re also able to offer flexible stage payment plans at no extra cost!
Self-building usually involves starting completely from scratch and constructing a custom-designed house on an otherwise empty plot of land. However, extensive refurbishments on partial or dilapidated structures can also count as self-builds in some cases – such as barn conversions.
If you have an existing Structural Warranty on the property, then renovations will usually invalidate that policy, as it won’t cover the new structure. You can either contact your warranty provider to see if they can update it, or secure a new policy for the altered structure.
The same applies if you complete a 100% original self-build property, and then decide to make renovations during its Structural Warranty term.
Yes. Your warranty is issued once underwriting is complete, regardless of the payment plan you choose.
A Self-Build Structural Warranty and Self-Build Insurance aren’t the same thing, so you’ll need both to cover all your bases. The only legal requirement is Employers’ Liability Insurance, which will be compulsory if you wish to employ people, such as builders and engineers, to work on your self-build project.
Whereas a developer would be responsible for managing legal protections on the construction site for traditional builds, you’ll be the primary employer if you’re building your home yourself. This means that you’ll need tailored Self-Build Insurance that can cover a variety of liabilities, such as:
- Public Liability Insurance – covering employee injury or death onsite, plus loss or damage to third-party property.
- Contractors’ All Risk Insurance – protecting the contract between you and contractors working on the build, covering the costs of materials.
- Contractor Works Insurance – covering repair or replacement costs if the partly-built structure is damaged or destroyed.
- Hired-in Plant Insurance – covering hire/repair/replacement costs for the damage or loss of hired equipment.
- Own Plant Insurance – covering repair or replacement expenses for damaged or stolen equipment that you own.
- Tools Insurance – protecting hand tools owned by yourself or employees that are stored on-site.
- Materials Insurance – directly covering construction materials stored on the site.
- Temporary Buildings Insurance – covering the repair or replacement of damaged temporary structures (such as Portakabins) on the site.
- Personal Accident Insurance – covering the policyholder and several named individuals in the event of an accidental injury onsite causing disability or death.
- Legal Expenses Insurance – covering litigation costs if a dispute arises between you and a contractor, utility company, or squatter.
Currently, only Employers’ Liability Insurance is required by law in the UK, but most self-builders will take out comprehensive Self-Build Site Liability Insurance just in case. The last thing anyone wants is for damage, theft, or accidental injuries to occur on your building site, but if it does, nobody needs the additional stress of paying for legal cases and compensation.
Lenders are also unlikely to accept loan applications if your self-build project doesn’t have adequate site insurance – not just a Structural Warranty. Once construction is finished, you’ll also need to have building insurance and contents insurance policies in place to protect your completed home and any personal belongings inside it.
Our lengthy auditing process ensures that we’re confident in the abilities of our chartered surveyors to administer certificates on completed properties. We will not issue a warranty until we are completely sure that all the appropriate standards have been met – even if this means requesting further corrective work.
This is part of the reason why a retrospective building warranty can be more expensive than applying for one in advance. You won’t be able to get a certificate if your build and our inspections can’t comply with the original terms of the warranty, upholding the official wording as prescribed by UK Finance.
If this isn’t possible, then the warranty cannot be issued, as it wouldn’t be legally valid. Therefore, banks and building societies are less likely to accept such an amended or unfulfilled document. This doesn’t mean that you’re stuck if the work is already complete – we promise that we’ll do our best to help.
