During any construction project there will be many instances that will cause issues in the completion and progress of your project. However, items frequently overlooked are structural warranties and CML professional consultants certificates. New build projects require these warranties and some extensions or other developments can benefit from them if there is existing structural damage or other unusual circumstances. These warranties and certificates are to protect the homeowner and the mortgage lender in the event of structural damage occurring after the property is completed. Essentially it’s an insurance policy taken out by the builder that protects the homeowner. If the property does not benefit from either of these certificates it will NOT be possible to raise a mortgage against the property which makes selling a property in the ten years after it is completed difficult.
When budgeting for the overall construction costs, the cost of these certificates should not be overlooked. The warranty is almost always charged as a single cost and varies from £1,000 up to £5,000, depending on the size of the project. The cost averages at about £2,000. It is advised that the builder or developer should contract a provider of these certificated just PRIOR to the start of construction works to enable their surveyor to carry out the relevant plan checks and the first site inspection.
Structural warranty insurance, which can also be referred to as latent defects insurance, is usually required for both commercial and residential properties. Each policy will be different but all cover major faults in the design and construction. Defects can be included in the more extensive policies but as a rule of thumb these will cost more. The coverage will last up to a period of 10 or 12 years after completion. Problems that arise with poor workmanship, material problems, or other defects in the covered period will have to be repaired or replaced by the warranty provider.
Providers of the certificates will advise their clients on the types of warranties they require to be accepted by the mortgage lenders. Structural warranty insurance can also be obtained retrospectively when the property is complete however this is generally more expensive as the important structural elements of the property have been covered over at this stage and therefore is considered to be a high risk to certify.
Whether obtaining certification pre or post construction, the main factor is to ensure that the relevant warranties & certificates are in place.
If you would like to find out more or discuss your project with one of the Arkhi team, get in touch on 01260 540170 or drop us an email at hi@arkhi.co.uk.