No Structural Warranty

[croon979]

Argh having a nightmare trying to buy a house. After having to pull out of another house purchase due to bank massively down valuing it, I found another house and made an offer on it. Offer accepted, so far so good.

I had AIP with our bank beforehand so no issues there. However bank obviously need to value this house too. It is a newish property built in 2016 and the seller is the guy who built it and he has been living in it since he built it. One off property with no real comparables so given my recent experience of big down-valuation I am nervous.

The Bank is sending a valuer around either today or tomorrow for a physical valuation but the Bank asked whether there was a structural warranty with the house. Vendor has confirmed no structural warranty.

I am now worried that this lack of warranty will mean that the Bank will not lend on the property. I have looked in the mortgage lenders handbook and apparently lack of warranty is not a dealbreaker it is in the discretion of the Bank and obviously they would expect to see appropriate building reg sign off and architect certificates etc.

Has anyone had any experience of this and, if so, how did you resolve it? Retrospective insurance? If so how much and who paid for it?

Never bloody easy is it?!

Hi the vendor may be able to get retrospective building warranty, think it's cost a little more than if he got it first when building. He probably didn't get it because I don't think it's worth the paper it's written on (friends words who does self building).
You have to have the stages checked a bit like building control, but often bloke turns up looks through car window🙄 signs off. Easy money and half the things your covered for you'd be exempt from claiming like builder going bust, your likely to be that builder in proper self building.

The passage of time is probably in your favour too - it's clearly been standing for 5+ years already and I assume you'll get a full survey in the circs?

Its a long story, but I had to get a retrospective warranty when CRL (Alpha) went bust. Our bank was unwilling to re-mortgage our 3 year old property without one. If it helps, we got a number of quotes, which ranged from £1500--4500. We chose a middle ground, and an 'A" rated insurer so we wouldnt need to go through it again. Just FYI, if you do need to get a retrospective warranty, I'd ask the house seller to do this for you before purchase. They will need to submit drawings of the house and other information you wouldn't have to hand necessarily.

Best to have a word with your solicitor, the warranty will have to pass the CML. As above the vendor will have to get it due to all the gumbings needed

Thanks for all of your replies. Sadly not going to need the advice now as have just been gazumped for a cash buyer apparently.

This housing market just sucks right now. Back to the drawing board.