New build with no NHBC - premier guarantee?

showders

Hi

I'm looking at buying a repossessed new build where the developer sadly went into receivership before practical completion.

The small development was being built with nhbc backing but was never completed due to company going bust

The houses are complete but I need a mortgage and they won't give one on the houses without an nhbc or equal approved scheme

I've been advised to look at a company called premier guarantee which I have done and am awaiting information from them

Does anybody have any idea what the cost of this type of cover will cost? And also would you be prepared to buy a house with no final nhbc?

Many thanks

jimpix12

I would certainly be prepared to buy a house with no NHBC but I would use that as a way to bargain and hype up how much 'I really would miss NHBC protection' etc. A lot of people on here and elsewhere say it's not worth the paper it's written on, which is probably true.

What is the name of the developer that went bust? I am interested in case it's local... :cool:

Thrugelmir

showders wrote: »

Does anybody have any idea what the cost of this type of cover will cost?

Give them a call. As they'll need some details of the property.

Oxonboy

Surprised the receiver is not selling with benefit of a new home warranty.

Worth checking with NHBC if their warranty was withdrawn (this is normally but not always the case) when the developer went bust. NHBC's number is 0844 633 1000 - ask for 'Claims' who may be able to tell you.

Premier Guarantee do offer a warranty to Receivers but it is usually priced above their normal rates as they have not had the opportunity to inspect during construction. Also, check the cover carefully. It may not be same as provided in the standard warranties provided by NHBC or Premier (both organisations offer similar but not identical cover).

showders

Hi

Already spoke with nhbc and yes cover was withdrawn but they do admit site was under cover before receivership! So I'm hoping that means regular checks were being completed

I've spoke with premier who are sending forms out as they do indeed need more info, builder, site, house size etc

I was hoping someone might have a very rough idea of expected cost of such a thing?

Thanks for replies so far!

rodenal

Just be careful as it's rare to find a newbuild without numerous defects - usually not structural or major external issues but if the developer no longer exists who will come in and sort out your burst pipes or drainage problems etc (which could mean stripping areas of tiling/plasterboard/ceilings etc then reskimming / taping jointing and repainting afterwards), if nobody then I would be looking for a very large discount as it's not unusual to discover this kind of problem when it's already caused several £k's worth of damage

showders

rodenal wrote: »

Just be careful as it's rare to find a newbuild without numerous defects - usually not structural or major external issues but if the developer no longer exists who will come in and sort out your burst pipes or drainage problems etc (which could mean stripping areas of tiling/plasterboard/ceilings etc then reskimming / taping jointing and repainting afterwards), if nobody then I would be looking for a very large discount as it's not unusual to discover this kind of problem when it's already caused several £k's worth of damage

Good points Rodenal that id not really thought of further down the line

At this point until I can get a mortgage on the property I wont need to worry about any of these things!

chappers

Try BPL(they are recognised by virtually all lenders) they will quote you for an insurance backed warranty, based on the rebuild cost.
They will then carry out a technical review which may highlight exclusions.

My last project with £328,000 worth of cover cost just over £10k.
Personally I would either be asking the vendor to provide the warranty or walk away.

All of the companies that provide warranties on completed properties will want at least half of the policy fee upfront , before carrying out their technical review, you will then have to pay the remainder before they will issue the warranty.
What would you do if they flagged/excluded something that prevented you from obtaining a mortgage.

Your alternative may be to find a company that may lend you some bridging finance(if building regs/planning are all ok) to purchase the property and then convert to a conventional mortgage once the warranty is in place.
This won't be cheap maybe 1.5% per month.
PM me and I could put you in touch with someone who may be able to help.
I wouldn't recommend this to an in experienced house purchaser, but for someone who knew what they were doing this could be a real chance to snap up a bargain, just don't forget to factor all the extra costs into the sale price, they could amount to an extra £3-4k plus bridging loan interest for the months you borrow plus the cost of the warranty.

Cheers
Gareth