NHBC - how necessary is it?

TDanger

FTB and have had a couple of offers rejected on a new build 3bed. We pretty much know that £225k would get it and it is a great property. The additional modcons will save us a few grand we would otherwise have to spend.

However,

it doesn't have NHBC warranty.

1) How important is this?
2) Is it de rigeur to have written into the contract that a two year warranty is agreed should anything happen?
3) Could this damage the mortgage agreement we have with NatWest? Value of house and some details agreed and they were very keen to lend but NHBC was not discussed.

Doozergirl

NHBC or another 10 year guarantee like Zurich is absolutely essential if you are buying with a mortgage.

A house is unmortgagable without one! Any developer should know that.

mustang1

Why is there no guarantee on it? Who is the developer? Any lender will insist upon a standard form 10 year guarantee being in place form NHBC, Zurich or Premier.

Any warranty given in the contract could end up being worthless if anything happens to the developer after you have purchased the property.

I wouldn't go near a new build property with a barge pole without NHBC / Zurich or Premier. You need to think about what happens when you come to sell this property - you'd be hard pushed to find a buyer who won't be looking for this as well.

Ladybird20

Is there something about an architects certificate?????that guarantees the builds

TDanger

Thanks for the advice.

Research last night and this morning has confirmed your responses - NatWest wouldn't lend without structural warranty and nor will anyone else. Seems absurd that the vendor hasn't realised this.

The estate agent expressed trademark surprised when I phoned him to say unless we have clarification of a ten year structural warranty we will end our interest in the property. He said he would look into it but claimed 'their are hundreds of properties being built like this all the time.'

And they wonder why Estate Agents have a bad press! Any further advice gratefully received but presumably without this structural warranty we can't continue.

naijapower

But how come you dont have NHBC or Zurich warranty.
Thought this was a standard

TDanger

The estate agent said to my fiancee yesterday that their is no NHBC in place. He talked about warranty for the appliances, etc but clearly it is a structural warranty we need. Regardless of the issues of lending on a mortgage we don't want to be up the creek,etc if in a year's time a crack appears, or the pipes burst.

Really is frustrating. Obviously things were going far too easily for buying a house! I will update when the estate agent responds. Fingers crossed he's got it wrong.

Doozergirl

He's got it wrong. It's a cash buy without a warranty so they're going to really struggle to sell it at full market value.

You get one with a car and they're generally cheaper than houses!

Jacka87

You 100% need a warranty. I would also say make sure its with NHBC cos I have a flat, the building is 5yrs old and I bought it a yr ago. The insurer is Zurich and its been a nightmare getting them to fix things relating to warranty. There is a common fault in the building with leaks related to the buildings external walls and balconies on certain flats.

They have refused to admit that its something that falls under there warranty and it took 5 yrs of the residents persistance, the building factors and legal action and they have now just began to work on the building!

Trust me its essential as you wont get a mortgage and the cost of major repair could be ridiculous if you had to stump up yourself. I would just advise NHBC before any of the other providers!

Fire_Fox

TDanger wrote: »

The estate agent said to my fiancee yesterday that their is no NHBC in place. He talked about warranty for the appliances, etc but clearly it is a structural warranty we need. Regardless of the issues of lending on a mortgage we don't want to be up the creek,etc if in a year's time a crack appears, or the pipes burst.

Really is frustrating. Obviously things were going far too easily for buying a house! I will update when the estate agent responds. Fingers crossed he's got it wrong.

Any warranty on appliances will be supplied by the manufacturer, so is not a 'benefit' of the sale. If you do buy a new place you register your appliances with the manufacturer and state you don't have a receipt as provided with a new build - job done.

sillybilly36

you defo need a warranty!