Barn Conversions & Building warranties – How difficult can it be ….

Any developer about to undertake a project involving the conversion of a barn needs to consider the cost for and difficulty in obtaining a Building Warranty (Latent defect insurance).

There has been a quantum shift in the risk assessment for this type of development, the majority of insurers have recently made the decision not to offer cover for barns.

However it’s not all bad news out of the big six (Insurers) two will still offer cover but they need to collate a large amount of  information from you and it can take weeks to just get an indication of cost. As an example of their reluctance to insure barns one of the providers will not insure a barn if livestock has kept in it in recent years.

No sign of the Brexit effect yet – Builders see rise in profits & rental markets remain calm

After the vote for Brexit, many people had predicted that it would trigger a slowdown in the property market. However British house prices have since increased at their quickest annual rate in four months in July.

A report by Nationwide has stated that house prices increased by 5.2% in July, up from a 5.1% rise in June despite predictions that it would only increase by 4.5%.

I thought it was worth explaining the different policies in this sector, there are three key areas of insurance for any of your clients who are going to appoint a contractor to carry out major works on their home (or for that matter build them a new one).

1. Latent Defect Insurance (Structural Warranty)
2. Non Negligent JCT 21.2.1 Insurance
3. Renovation/ home works Insurance

These three policies all cover different parts of the build process but all are just as important as each other.

New Build Home WarrantyNew Home Warranty

Who is it for?

Professional Property Developers and Contractors / Builders constructing new build units

Type of properties covered

Any new build, conversion or major refurbishment of a residential home including (but not limited to) houses, flats, bungalows, barn conversions

Why Choose a New Build Home Warranty?

Approved by Council of Mortgage Companies
Accepted by all High street lenders
10 year insurance against major structural damage
Can be taken out even if project has started

Building ControlBuilding Control Services

Who are we?

Buildsafe UK is an independent provider of Build control services, we team with a panel of Approved Inspectors to ensure you receive a professional service.

What is Building Control?

Building Regulations in England and Wales are set by the Department for Communities and Local Government (DCLG). These are standards for the design and construction of buildings to ensure the safety and health of the people who use those buildings. The standards also include requirements to ensure energy efficiency (the conservation of fuel and power) and accessibility (providing facilities for people, including those with disabilities, to gain access and move around inside buildings)

Changes to Regulations

When undertaking any project that requires permission under the building regulations there is a choice of who you use to provide that service. Historically there was only one choice, the local authority, but since 1997 anyone undertaking a project has the option to choose a private, licensed company to provide the service. These companies are approved inspectors and their tailor made services may better suit a client’s needs. Government and industry recognise that competition in this sector has had a positive impact, providing a stimulus for greater efficiency and higher standards of customer service

What do we offer?

Pre-submission advice and attendance at design team meetings
Inspection plans outlining the number and frequency of site inspections prior to undertaking projects
Checking of project plans and specifications within 10 days
Constant review and monitoring during projects and upon completion
Available at all times to advise you on all aspects of the building regulations whether verbal, written or electronic

Click here to fill out an enquiry form

Got a question? Call us – 020 3701 0422

Development FinanceProperty Development Finance

Build Safe finance works with a specialist panel of development finance lenders to enable access to funds at competitive interest rates. Facilities available range from £100K to over £10m in the right circumstances. In addition we have access to competitive bridging facilities for when you need to leverage your property assets

The Build safe team has in excess of 20 years’ experience in the UK property sector including development finance, bridging loans and asset management

Our panel of lenders are looking for developers with a proven track record who are developing a relevant project for the location and in established residential areas

The criteria are set individually but as a guide they will lend 100% of the construction cost and up to 55% of the GDV (gross development value). Interest rates vary but are fixed for the term of the loan. Arrangement and redemption fees are negotiated on a case by case basis. In the majority of cases we can provide you with a lending decision in principle within 48 hours of application

We can also assist with bridging facilities usually up to 60% of the value of the asset

Our ethos is to provide outstanding customer service. Sourcing finance can be a difficult process for a developer with lots of form filling and time spent chasing. We take away that pain by managing the process for you and making sure you receive the most relevant product available to match your requirements

Click here to fill out an enquiry form

Got a question? Call us – 020 3701 0422