When building a property or converting a building into residential dwellings, 2 types of certificates are available once a property is completed and you CAN NOT SELL the completed property without one of these!
Either of these certificates should only be issued by a professionally qualified person such as a Chartered Building Surveyor who has monitored and/orchecked the works that have been carried out have been done so to a satisfactory standard and that the property is fit for purpose for future homeowners and their mortgage lenders to rely upon these certificates.
In the event of a defect in workmanship, product or design discovered up to 10years after the completed works, a claim may be made to rectify or even rebuildthe property.
If a defect is discovered up to 6 years after the completed works whereby the defect could have been identified and/ or prevented during the Monitoring Building Surveyors inspections, a claim may be made to rectify or even rebuild the property.
As mortgage lenders are tightening up their lending criteria, unless a provider of aPCC or a Warranty has been appointed from the commencement of works the lender may reject either of these certificates.
This may prevent the property from being mortgageable! Don’t get caught out!
Despite the majority of mortgage lenders stating that they accept both types of these certificates under the UK Finance mortgage lenders handbook,
6.7.4 AND 6.7.1 of their lending criteria, this MAY NOT always be the case. We would always recommend appointing a PCC or Warranty provider
BEFORE works start, not only because of the above, but because it is also much more cost-effective. This is because there is more risk involved from an insurance claims point of view, if works have not been monitored throughout the construction stages and the Monitoring Building Surveyor may not be able to see any defects that have been covered over.
Warranties – Not Cut and Dry
It’s important to note that if a Warranty provider has been called in late in the day, ie when the property has already been completed, the level of cover provided under the Warranty certificate is identical to the cover provided had the property been monitored throughout. The only difference is the cost to purchase such cover. Typically this can be twice as expensive if not more than appointing a provider from the commencement of works.
Fair For All Budgets
A Structural Warranty is typicaly twice the price of a PCC. So depending on your budget, a Structural Warranty is not always an option for a self-builder or smaller developer and in those cases, a PCC would be their only option.
Don’t Put It Off
Appoint a certificate provider from the commencement of works!
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