Completed or part-completed developments are perceived to hold greater inherent risk from an underwriting perspective, as the insurer has not had the opportunity to monitor the build throughout the construction period.
That vantage point directly correlates with the premium cost of insurance. Premiums can increase by as much as 100% from what they would have been, had the policy been taken out before the development work had started.
Retrospective building warranties, also known as a completed house warranties, offers peace of mind and security to the new purchaser and their lender. Retrospective warranties also enabling the developer to realise their ultimate objective of completing the sale of units and/or refinancing.
It’s useful to note Section 6.7 of the UK Finance (UKF) handbook states that if a building warranty is not available, a professional consultant certificate (PCC) may be acceptable to lenders as an alternative. For more information, read our insights piece by J3’s Head of Business Development, Daisy Neall on Structural Warranty Vs Professional Consultants Certificate.
Our advice in this regard would always be to seek a warranty that is backed by A-rated capacity. Failing that, explore the unrated warranty market and as an absolute last resort, consider a professional consultant certificate.
The benefits of our Retrospective Building Warranty:
- Valid for 10 years from practical completion
- First party insurance backed by A-rated underwriters
- Covers the cost for complete or partial rebuilding in the event of structural failure, including professional fees and demolition
- UK Finance complaint and recognised and accepted by all major mortgage lenders
Why choose J3 Advisory?
All of our policies are underwritten by A-rated insurers, providing our clients total peace of mind.
Approved by all major lenders
The leading banks and building societies widely accept our retrospective warranty, helping potential buyers obtain the mortgage they need to purchase a home.
Full market comparison
We scour the market to find the most suitable building warranty for each project.