What is a Build-to-Rent Warranty?

Unlike traditional Structural Warranties, which protect a homebuyer who may be self-funded or purchase the property via a mortgage loan, a Build-to-Rent Warranty protects the developers and investors directly against potential structural defects in a build-to-rent property.

When the developer and/or investor will be holding onto the asset rather than selling it off upon completion, it’s important to have a suitable Structural Warranty in place. A multi-residence property that’s purposefully built for renting will have different costs and conditions to consider.

If you’re developing or investing in a build-to-rent construction, not just purchasing a new build or buy-to-let property, then our Build-to-Rent Structural Warranties can offer you valuable financial security should you need to claim on Build-to-Rent Latent Defects Insurance.

Are you building multiple homes for rent?

Whether your build-to-rent project is a horizontal or vertical development, solely residential or incorporating mixed-use units, it’s crucial to ensure that the proper legal cover is in place from the very start. The last thing you want is to jeopardise the significant financial investments involved, which can be worth hundreds of thousands to millions of pounds.

You shouldn’t just rely on standard building insurance to cover potential losses, as these policies often don’t cover ongoing developments anyway. A tailored Build-to-Rent Structural Warranty can provide a guarantee of protection against structural defects from the beginning of construction up to 10-12 years after the completion certificate has been issued.

For five to six-figure projects, it’s not worth compromising on structural protection. This type of policy is as fundamental to the property as the foundations themselves. The majority of purpose-built construction projects might reach completion and endure for many years without a hitch, but you never know when something might go wrong at any stage.

What does a Build-to-Rent Structural Warranty cover?

Similar to other Structural Warranties, a Build-to-Rent Warranty covers latent structural defects for a period of 10-12 years after 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.

Why choose us for your Build-to-Rent Warranty?

If you’re looking for a Build-to-Rent Structural Warranty provider with the technical expertise to support your project, then ABC+ Warranty & Architects Certificate 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.

Accreditation.

— Established in 1989.  

Our surveyors hold at least one of the following qualifications.

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How are build-to-rent properties different?

Build-to-rent schemes are different from traditional private rental schemes in many ways. Private rental owners tend to be individuals with fewer than ten separate properties on the rental market. These are often older homes which may not have been originally bought to become rentals.

On the other hand, build-to-rent properties are purpose-built developments that are specifically designed for the rental sector. These tend to be blocks of apartments with at least 50 individual homes, which are financed and rented out by a large institutional group rather than one landlord.

The institution is both responsible for financing the development and maintaining it after construction is completed, while a traditional private landlord will probably obtain a mortgage from a bank. Build-to-rent institutions cannot sell off individual residential units like a typical landlord would be able to, making them different from regular new build or buy-to-let properties.

Build-to-rent developments are larger-scale construction projects that tend to involve inclusive amenities, such as leisure spaces and fitness facilities, and promise dedicated on-site management services. They’re long-term investments designed to encourage long-term tenancies and foster community growth, targeting specific demographics like young professionals or retirees.

Can I get a Build-to-Rent Structural Warranty for a mixed-use development?

Yes, it’s possible to get a Build-to-Rent Warranty for a mixed-use property. Even in a large block of flats, there could be a commercial unit on the ground floor, such as a shop, restaurant, or gym. Some mixed developments can even include offices and apartments in the same structural block.

From student accommodation to senior living, there are many ways to incorporate mixed-use units into build-to-rent developments. There’s also a growing trend of ‘integrated living’ with public amenities and communal spaces alongside build-to-rent residential units or adjacent to them.

Since high-quality facilities with comprehensive maintenance are expected from build-to-rent properties, it makes sense to get multiple uses out of a several-storey high-rise residential building.

If only part of your purpose-built development is for private rent, you can still contact us for advice on Structural Warranties and receive a tailored quote based on your particular circumstances.

What are build-to-rent landlords responsible for?

Build-to-rent landlords can be financial groups, private investors, local councils, housing associations, or any organisation receiving funding from the government to build rental accommodation.

Just as an individual landlord would be legally responsible for maintaining the building they own, so are institutional landlords. They will be liable for structural repairs and both exterior and interior safety standards – including gas, electric, plumbing, and fire safety – while the tenant is usually only responsible for the interiors (not including communal areas).

However, the respective liabilities agreed upon for the landlord and tenant can vary, depending on the rental contract. At the very least, the landlord will be responsible for structural maintenance.

This is where a Build-to-Rent Structural Warranty comes in – to avoid problems down the line caused by latent structural defects, this policy can help to cover the costs of structural repairs resulting from negligent design or construction failures.

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