Structural Warranties

If you have a newly-built property, you can either take out a warranty or a PCC. Most people choose PCCs because they are cost-effective. You may even receive generous discounts if you have a number of properties to certify. Additionally, architects offer flexible payment options for the PCCs. While they can be great for people who wish to save money, architect’s certificates won’t be suitable for everyone. First, you should remember that PCCs aren’t insurance policies. That means they won’t automatically cover any repair costs of your home. Claims against the consultant will only be for negligence and will be covered by the architect’s professional indemnity insurance. If the architect becomes insolvent, the insurance may lapse, and this will leave you without any cover.

The Council of Mortgage Lenders (CML) now called UK Finance has created the PCC on behalf of the banks to formalise and standardise the certification of newly built or newly converted residential property. The UK Finance standard PCC certificate needs to be administered and signed off by a chartered professional consultant such as a Surveyor who must be registered with the Chartered Institute of Builders (CIOB), Royal institute of Chartered Surveyors (RICS), Chartered Association of Building Engineers (CABE) or an Architect who is registered with the Architects Registration Board (ARB) in order for it to be valid. Professional Consultants Certificates were previously called Architects Certificates and this name is still commonly used around the UK. This certification confirms that a professional consultant has monitored the progress of the building work. During the construction period, the provider of the certificate will give you a letter confirming that they will be supervising the construction. In some cases, this letter is required by mortgage lenders.

More than 80% of lenders accept the Professional Consultants Certificate. A full list of these lenders can be found here: https://lendershandbook.ukfinance.org.uk/lenders-handbook/pcc/

A PCC will be essential in cases where the owner of the property needs to sell the building, and the buyer needs a mortgage to afford the house. You may also need this certificate if you want to rent out the property and wish to release equity by taking out a mortgage. PCCs are usually issued at the end of the construction period.

The cost of a PCC will vary depending on the build cost and gross internal floor area (GIFA) of the unit, but is cheaper than a structural warranty. You can contact our team to get a quote for your project.

A PCC isn’t a warranty. It doesn’t provide cover for structural defects in the property. This document only offers peace of mind to the homeowner and mortgage lender as it shows that the project was properly constructed. In the case of a structural defect, the architect may be liable. It is important to note that negligence must be proven in court for the architect to cover the cost of repairs. Note that they will only be liable if they are solvent and trading at the time. Also, the architect must maintain a sufficient level of professional indemnity insurance for the entire time that the certificate will be valid. PCCs are only issued after satisfactory completion of a building, and they are valid for 6 years from the date of completion. After these 6 years, you won’t be protected by a PCC. For a more comprehensive cover, you can consider getting a structural warranty. This cover lasts for 10 years and covers the cost of repairs or even a complete rebuild of the property. In case the building develops structural issues, you will get immediate compensation without having to prove negligence. While structural warranties have many benefits over PCCs, PCCs are a good alternative for homeowners who don’t have money to spare. You should note that both covers can be used to obtain a mortgage.

PCCs are most commonly issued by architects, but other consultants with the necessary qualifications can also issue the certificate. These qualifications are listed in the CML handbook here: https://lendershandbook.ukfinance.org.uk/lenders-handbook/pcc/ It is worth noting that the consultants will usually need to have been involved in the construction of the buildings. This way, they can be certain that everything was done in the right way. This is one reason why retrospective PCCs are rarely issued.

To access lending to either develop a property or to buy a property which has been developed in the last 10 years, lenders require assurances that the development work has been completed to industry standards. The Professional Consultants Certificate provides this assurance.

Typically, the developer or builder purchases the warranty and includes it in the cost of the property. However, in some cases, individual homeowners or renovators may need to arrange their own cover.

Structural warranties typically last for 10 to 12 years from the date of practical completion of the property. However, the coverage duration can vary depending on the provider and policy type.

No, a structural warranty differs from home insurance. While home insurance covers damage caused by external factors like fire or flooding, a structural warranty specifically covers defects or faults in the construction of the property.

The cost of a structural warranty depends on factors like the property size, construction value, project type, and duration of coverage. On average, warranties range from 0.5% to 1% of the build cost, but this varies by provider.

Most structural warranties are independent of the builder and remain valid even if the builder ceases trading. This ensures ongoing protection for the property owner.

Structural warranties are generally designed for new builds, self-build projects, or major refurbishments. However, some providers offer specialised warranties for older properties or previously constructed homes.

To make a claim, contact your warranty provider, submit evidence of the defect (e.g., photographs or reports), and provide any requested documentation. An assessor may be sent to evaluate the issue before processing your claim.

A structural warranty is a type of insurance policy that provides protection against defects in the structural components of a property, such as foundations, walls, and roofs, for a specified period after construction or purchase.

Structural warranties provide peace of mind by covering significant defects in a property’s structure. They’re often required by lenders, buyers, or investors as part of the purchase or financing process.

Most structural warranties cover defects in critical structural elements like foundations, walls, roofs, load-bearing floors, and beams. Some policies may also include waterproofing, drainage, or additional cover for non-structural elements.

If a builder is unwilling to rectify identified defects, homeowners can escalate the issue to warranty providers or relevant regulatory bodies to seek resolution.

Conducting a snagging survey ensures that any defects are identified and addressed promptly, safeguarding your investment and ensuring your new home meets the expected quality standards.

A snagging survey is a comprehensive inspection of a new build property to identify defects or unfinished work, known as 'snags'. These can range from minor cosmetic issues to significant structural problems.

It's advisable to schedule a snagging survey just before or immediately after moving into your new home. Ideally, this should be done within the first two years, as most builders offer a defect warranty during this period.

YES! But...while homeowners can perform their own inspections, professional snagging inspectors have the expertise and equipment to identify issues that may be overlooked, ensuring a thorough assessment.

The duration of a snagging survey varies based on the property's size and complexity but typically ranges from 2 to 7 hours.

After the survey, you'll receive a detailed report highlighting all identified defects, often accompanied by photographs and descriptions. This report can be presented to your builder for rectification.

A typical snagging survey includes checks on: Roofing and external structures Internal finishes like plastering and painting Windows and doors Electrical and plumbing systems Heating and ventilation systems Loft and insulation Driveways and gardens This comprehensive approach ensures all aspects of the property are thoroughly inspected.

Builders are generally required to address defects that fall outside acceptable tolerance levels set by governing bodies like the NHBC. However, it's beneficial to report all identified issues, as builders often rectify multiple defects simultaneously.