Part-Complete And Completed Developments – Can You Warrant The Risk?

We recognise that the current market is ripe for consolidation and have been approached by a number of property professionals seeking insurance and finance advice regarding the acquisition of part-completed and near-completed sites. If you find yourself in a similar situation, we would recommend you verify whether the site acquired has a warranty in place and if it’s possible to have the warranty transferred to you.

If not, it is imperative that you secure a new warranty, or depending on the stage of works, a retrospective warranty (completed home warranty) immediately. A retrospective policy is designed to cover completed units which have not benefitted from being inspected from a structural warranty perspective. It is a requirement for all lenders and mortgage companies, so it is the key component that allows for the sale of units, asset re-finance and for peace of mind. Typically, developers that are acquiring part-complete or completed sites will at some stage, require a finance facility (either at inception or exit) and the provider of that facility will want to know whether there is a warranty in place. If there isn’t, you won’t be able to draw down funds – So making the provisions for and knowing the costs are a key.

A completed or part-completed property is viewed as a greater risk from the underwriters perspective, as the insurer has not had the opportunity to inspect and oversee key phases of the build. The increase of perceived risk for the insurer directly links to the premium cost of the warranty. Instances, where developers don’t secure a warranty until after the build is structurally complete, can see the premiums increase by as much as 100% from the original cost.

Why choose a Retrospective Building Warranty by BuildSafe?

Part-complete and completed projects present a greater challenge to place in the insurance market. Knowing who to go to, how to present the risk and obtaining appropriate terms in a timely fashion, with a cost effective rate of premium is precisely why UK property developers choose BuildSafe to arrange their building warranties. Other benefits of our retrospective building warranty include:

  • All warranties are fully compliant with the Council of Mortgage Lenders
  • Accepted by all high street lenders
  • Enables sale of units – Without a warranty you will not be able to sell a house, where the purchaser intends to raise a mortgage
  • First-party, 10-year insurance against major structural damage
  • Cover available immediately after a satisfactory building survey



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