Retrospective building warranties, also known as completed house warranties, offer peace of mind and security to the new purchaser and their lender.
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.
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
Retrospective building warranty FAQs
A retrospective policy is specifically tailored to cover completed units that haven’t undergone inspections for structural warranties. As a pre-requisite by most lenders and mortgage companies, it plays a pivotal role in facilitating the sale of units, enabling re-finance, and providing peace of mind. Having this policy in place assures buyers and lenders that the property is protected against potential structural defects, making it a crucial component for property transactions and overall financial security.
A retrospective building warranty is essential and needed for several important reasons:
Protecting completed properties: A retrospective building warranty provides crucial protection for properties that have already been completed in the last 10 years but may not have had the benefit of a staged inspection process.
Lender requirement: Most lenders and mortgage providers require a building warranty to be in place before financing a property purchase or re-finance. Having a retrospective warranty ensures compliance with this requirement, making it possible to secure the necessary financing.
To enable property sale: A retrospective building warranty enhances the salability of completed properties. Prospective buyers are more likely to feel confident and secure in their purchase knowing that the property is covered by a warranty, which safeguards them from potential structural issues.
Peace of mind: For property owners and investors, a retrospective building warranty offers peace of mind. It protects against the financial burden of addressing unforeseen structural defects that may arise after the completion of the property.
Transferable coverage: The warranty is often transferable to subsequent owners, maintaining the property’s value and providing ongoing protection for future occupants.
A retrospective building warranty provides coverage for newly built structures, offering protection for construction projects completed in the last 10 years. This type of building warranty is typically obtained after the completion of a project.
For instance, if you’ve purchased a newly built property with the absence of a warranty, a retrospective building warranty insurance policy can help mitigate the risks and enable refinance and saleability of the asset.
It’s essential to note that obtaining a retrospective building warranty doesn’t automatically guarantee protection from potential structural problems. Before issuing the policy, all insurers should conduct a thorough structural survey to ensure there are no known faults with your building’s construction.
Having this warranty provides peace of mind, knowing that you won’t bear the financial burden if issues related to the build quality arise unexpectedly.
Retrospective building warranties serve as safety nets against potentially costly repairs caused by faults —an investment worth considering, especially if your property was constructed by multiple sub contractors without a principal contractor.
A retrospective building warranty ( also known as a completed home warranty) is a common requirement for any property that is uninsured and was built, renovated, or converted within the past 10 years.
A retrospective building warranty is typically purchased by property owners or sellers following completion of the newly built property
The retrospective warranty serves as a means to provide protection and coverage for past construction work and latent defects that may arise after the completion of the property.
Other parties in the chain that benefit from a retrospective building warranty include:
Lenders, Financial Institutions: For lending entities like banks providing finance on these properties, a retrospective warranty provides assurance that they won’t endure financial losses due to faulty workmanship, materials and or design. Hence, sometimes it becomes a prerequisite for lenders before granting finance on older properties.
LPA Receivers: Having a 10 year building warranty is crucial for the successful sale of new build properties. We have extensive experience collaborating with various LPA Receivers and can facilitate the arrangement of a newly constructed asset in receivership .
Prospective Buyers: When individuals consider investing in newly constructed homes, having a retrospective building warranty can offer them peace of mind about future upkeep expenditure, making the property more appealing.
Retrospective warranties typically cover various types of newly built properties, including:
- Completed Residential Units: Residential units that have already been completed, but were not covered by a warranty at the time of construction, can be eligible for retrospective warranty protection.
- Commercial Buildings: Newly covered commercial properties that were not originally covered by a warranty can also be considered for retrospective coverage.
- Conversion Projects: Properties that have undergone conversions or renovations without a warranty in place are eligible for retrospective warranty coverage.
- Investment Properties: Properties acquired for investment purposes that lack warranties can also be protected by a retrospective warranty.
It’s important to note that the eligibility of a property for retrospective warranty coverage may vary based on the specific policy and the insurer’s assessment of the property’s condition and construction history. Property owners should consult with building warranty providers and specialists such as J3 to determine the suitability of their property for retrospective coverage.
The primary benefits of retrospective building warranties are:
- Peace of mind
- Financial protection
- Facilitates sales and refinancing
- Lender confidence/ acceptance
A retrospective building warranty offers crucial protection to completed properties constructed in the last 10 years that may not have had a structural warranty during their construction. Secondly, it satisfies lender requirements, making it possible to secure financing for property purchases or refinancing. Additionally, having this warranty enhances the saleability of completed properties, instilling confidence in prospective buyers.
For property owners and investors, the retrospective building warranty provides peace of mind, protecting them from unexpected financial burdens related to structural defects. Moreover, the warranty is often transferable to subsequent owners, ensuring ongoing protection and maintaining the property’s value over time.
The process of acquiring a retrospective building warranty might seem complex initially, but with careful planning and guidance, it becomes straightforward & J3 advisory can help:
Expertise: We specialise in building warranties and have a team of experienced professionals with in-depth knowledge of the construction industry. Our expertise ensures that clients receive the most suitable and comprehensive warranty solutions for their specific needs.
Access to multiple providers: We work with a wide network of reputable A- rated warranty providers, giving clients access to a range of options and competitive pricing. This allows clients to find the best-fit warranty coverage for their projects or properties.
Tailored Solutions: J3 Advisory takes a personalised approach to each client’s requirements. We assess the unique aspects of the project or property and recommend tailored warranty solutions that address specific risks and provide adequate coverage.
Efficient process: Our streamlined warranty procurement process, saves our clients time and effort. The advisor appointed for your case will handle all the necessary paperwork and negotiations with warranty providers, ensuring a smooth and hassle-free experience.
Industry reputation: We have built a strong reputation in the construction and property sector for its professionalism, reliability, and commitment to customer satisfaction.
Choosing J3advisory for retrospective building warranties means benefiting from our expertise, access to multiple providers, tailored solutions and strong industry reputation. With our assistance, clients can confidently navigate the complex world of building warranties and protect their investments with peace of mind.
A retrospective completed housing warranty is tailored to provide coverage for properties that have been built in the last 10 years. A comprehensive structural survey is necessary to identify any existing issues, which can then be addressed or excluded from the coverage as needed.
Prospective clients will be required to provide information about the property, such as the type of property (residential, commercial, etc.), its location, age, and any previous warranty history (if applicable). Based on the information provided, our team will source quotes from their network of warranty providers and present tailored options that suit your project or property. Once satisfied with the quote and terms, J3 Advisory will instruct the insurer and will be on hand to assist clients throughout the process, ensuring a smooth and efficient experience.
Securing a retrospective building warranty may appear complicated, particularly for those unfamiliar with the process. However, rest assured, obtaining quotes tailored to each schemes unique requirement is a straightforward process with an experienced advisor on hand. Contact us on +44 203 096 0718 should you need assistance with your retrospective structural warranty.