Selling or remortgaging
No structural warranty on a newer home?
Your buyer's solicitor or your lender has asked for a warranty and you can't find one. Don't panic, and don't pay for anything yet. Here's what to check first and what your options are.
Why you're being asked for one
There's no law that says a home must have a structural warranty. The requirement comes from mortgage lenders. Under the UK Finance Mortgage Lenders' Handbook, lenders will generally only lend on a newly built, converted or renovated home if it has a warranty or a Professional Consultant's Certificate (PCC). In practice that question usually comes up when a home is less than ten years old.
It tends to surface late. A self-builder or small developer finishes a home, lives in it or sells it, and nobody asks until a buyer's solicitor raises it partway through the sale. The same thing can happen when you remortgage with a new lender.
If you're buying with cash and not selling soon, nobody may ask at all. The problem is usually the next person's lender.
First, check whether one already exists
It's worth an hour of looking before you pay for anything. A warranty or PCC issued when the home was built normally stays with the property, so it may still be in date even if you never saw it.
- Your purchase file. Ask the solicitor or conveyancer who acted when you bought. New home papers are often in their file.
- The builder or developer. Ask who provided the warranty or who signed the certificate, and for a copy.
- The architect or consultant. If one was involved, ask whether they inspected during the build and issued a certificate.
- The completion date. Find the Building Control completion certificate. It shows when the home was finished, which decides how much of any ten year period is left.
Then ask exactly what the lender wants
Before you choose a route, get the requirement in writing. If you're selling, that means your buyer's lender, through your buyer's solicitor. If you're remortgaging, ask your lender or broker. You want to know three things:
- Will they accept a PCC for this property, or only an insurance-backed warranty?
- Will they accept a certificate issued after the home was finished? Some lenders won't.
- Do they have a required form, or a list of professionals or providers they'll accept?
Lenders' rules differ, and can differ between products from the same lender, so a yes from one tells you nothing about the next.
Your options if there's no warranty
A retrospective PCC
A consultant assesses the finished home using the drawings, dated photos, structural calculations and Building Control records, plus an inspection. Because some of the work is now covered up, more evidence is needed, and sometimes some opening-up. It isn't possible for every home, and some lenders won't accept one, which is why the lender's answer comes first. Our retrospective PCC guide explains how it works.
A retrospective insurance policy
Some insurers offer structural defects cover on homes that are already built. They normally want a check of the plans and a structural survey first, and any defects found are either put right or left out of the cover. It usually costs more than cover arranged before the build. See PCC or structural warranty for how the two compare.
A different lender or a cash buyer
If one lender says no, another may say yes, so a mortgage broker who knows new build and self-build criteria can be worth a call. A cash buyer doesn't need a lender's approval, but they may still ask for a lower price, and it narrows the number of people who can buy.
What won't fill the gap on its own
- A Building Control completion certificate. It shows the work was signed off under the Building Regulations. Lenders normally want it as well as a PCC or warranty, not instead of one.
- A survey. It describes the condition of the home on the day. It doesn't confirm how the home was built.
- An indemnity policy. These usually deal with a specific legal risk, such as missing paperwork. Don't assume one will satisfy a lender unless the lender says so.
What to gather now
The more of this you have, the quicker we can tell you if a retrospective PCC is realistic:
- Planning and Building Regulations drawings
- Building Control completion certificate and any inspection records
- Structural calculations and specifications
- Dated photos from the build, especially foundations and anything now hidden
- The lender's requirements and your target completion date
Send us what you have, even if it's incomplete. We'll tell you what's possible before you commit to anything.
Common questions
Frequently asked questions
Can I sell a house under 10 years old with no warranty?
Yes. It isn't illegal, but a buyer who needs a mortgage may struggle, because lenders generally want a warranty or PCC on a newer home. Check what the buyer's lender needs, then look at a retrospective PCC, a retrospective insurance policy or a cash buyer.
Can I get a warranty after the house is built?
Sometimes. A normal new home warranty has to be in place before work starts, but a retrospective PCC may be possible for eligible homes, and some insurers offer cover on finished homes after a survey. Both depend on the evidence, and on what the lender will accept.
Does a home over 10 years old need a warranty?
Lenders' questions about a warranty or PCC are usually about newer homes, so it's less likely to come up. If your lender or solicitor does ask, get the requirement in writing and tell us what they said.
My sale is about to fall through. What should I do first?
Ask your buyer's solicitor exactly what the lender will accept, in writing. Then send us that answer, your drawings and records, and the completion date you're working to, so we can tell you quickly if a PCC is possible. We can't promise a certificate until we've seen the evidence.
Who pays for a retrospective PCC, the seller or the buyer?
There's no fixed rule. It's a matter for you and your buyer to agree through your solicitors.
Got a sale or remortgage waiting on a warranty?
Tell us who's asking, what they've said and what paperwork you have. We'll tell you what's possible.