New Home Buy Warranty Question

CNL1979

Im currently looking into a new build that was finished approx 18 months ago.

I have a question that I hope somebody may be able to help with. I have asked the Estate Agent what warranty is with the house, as I've been led to believe that all new buildings require this as a mortgage requirement.

I haven't exactly been impressed by the response so far; so my question is, is having a warranty (LABC, NHBC, ...) an essential requirement; what should I do if the vendor doesn't have one and whose responsibility is it? The last point has confused me in particular as different sources suggest the builders should have had it, while others seem to suggest it's me as the buyer that needs to get it?

Any help anybody can offer would be extremely appreciated...

Many thanks,

caeler

Whilst NHBC isn't worth the paper its written on for the small things it is important to have insurance in place for the big stuff. I'm sure your solicitor can advise you. If you are purchasing a house built by one of the big developers like persimmon then it will definitely have NHBC. I don't have experience with smaller builders but I'm sure somebody will be along to advise shortly.

davidmcn

CNL1979 wrote: »

is having a warranty (LABC, NHBC, ...) an essential requirement; what should I do if the vendor doesn't have one

If there's no warranty then lenders' requirements vary, but they will require as a minimum (usually) a certificate by the architect who supervised the construction.

If you're being offered absolutely nothing, walk away, it's not going to be mortgageable.

while others seem to suggest it's me as the buyer that needs to get it?

No, it's not something the buyer can resolve.

kingstreet

The NHBC will have passed from the builder's solicitor to the purchaser's solicitor when the first purchase was completed.

The solicitor will then have passed it to the purchaser.

This person is now the vendor of the property and should have passed it to their solicitor, or will do so when a sale is agreed and they instruct a solicitor.

All the EA can do is ask the vendor. There is no requirement for the agent to obtain this in advance, as it is one of the issues to be resolved between solicitors.

CNL1979

Many thanks for all of the answers, I greatly appreciate the information. It seems as though the situation is one for solicitors to resolve; I guess I was getting ahead of myself and didn't want to incur costs if the property is unmorgageable without the warranty...

kingstreet

CNL1979 wrote: »

Many thanks for all of the answers, I greatly appreciate the information. It seems as though the situation is one for solicitors to resolve; I guess I was getting ahead of myself and didn't want to incur costs if the property is unmorgageable without the warranty...

You won't want to apply for a mortgage or spend anything until your vendor has a property and the chain has firmed up.

Once your solicitor has the draft contract from the vendor's solicitor, he should be able to ensure there's an NHBC. That may well be before you have to spend anything.

CNL1979

Thanks again Kingstreet, really appreciate it.

Just to provide some further information the vendor isn't part of a chain as it appears to be part of a somewhat unsuccessful property development.

The building has been sat on the market for 18 months and seen 50k chopped off the original asking price, I'm looking to get another 25k from that. I currently live 30 yards away from the premise and have seen everything involved with it - always liked the building but been well aware of the problems they've faced with it.

kitty_kins

Don't know how helpful this will be but thought I would chip in:

We bought a new build in June and we received a copy of our NHBC warranty in our new home pack from the builders. This also included all the details on everything in the house (boiler, washing machine, dishwasher, fridge etc.)

I would imagine your vendor would have a similar folder (hopefully)