CRL warranty not accepted

Dave234

Hi,

I'm very close to buying a new build house but Lloyds TSB has come back at the last minute to say they do not accept CRL warranty certificates. Has anyone else come across this problem? Do you know if it is possible for the developer to change to a different warranty scheme?

Several of the flats in the building are already occupied so presumably they are covered by the CRL warranty.

Not sure why these issues always come up at 5pm on a Friday! Many thanks for any assistance with this.

davidmcn

Dave234 wrote: »

I'm very close to buying a new build house but Lloyds TSB has come back at the last minute to say they do not accept CRL warranty certificates.

Are they sure?

Their info in the CML Handbook says they do accept them:

https://www.cml.org.uk/lenders-handbook/englandandwales/lloyds-tsb-scotland-plc/#C8922

I would suggest you get your solicitor to query this.

Dave234

Apparently it is a very recent change. Solicitor is saying since they haven't updated the lenders handbook yet they need to still accept it. Hoping since we have already begun the process with the expectation that CRL was acceptable they will allow us to use it!

TimNoble

The insurers for CRL called Alpha,were in financial difficulty and lenders were concerned that they would survive so last month some lenders withdrew mortgages for houses with CRL 10 year warranties. Worse news - Alpha have now gone bust and no lender will accept a CRL warranty on a new build property. Developers need to re register their properties with a new warranty provider and this will take time and more money so expect delays

[Deleted User]

https://www.buildingandland.co.uk/2018/05/11/alpha-insurance-residential-warranties-aware/

https://c-r-l.com/alpha-statement/

kingstreet

This is the current LBG list of acceptable warranty providers;-

NHBC
Premier Guarantee - inc the LABC New Homes Warranty and LABC Hallmark Scheme
Building LifePlans Ltd (BLP)
Buildzone
Checkmate
Advantage HCI
Global Home Warranties
International Construction Warranties (ICW)
Protek
Q Assure Build
Aedis
FMB Insurance
Build Assure
ABC+

Warrantyexperts

The issue of CRL Warranties and Alpha insurance is simple in one respect but the solutions are quite complex. The simple bit is that Alpha Insurance have gone bust. Alpha were an unrated insurer (no Standard and Poors/A M Best type rating of their financial security) and based in Denmark. Most regulated insurance brokers will not deal with "unrated" insurers preferring to use the insurers that carry a security rating. Alpha backed many CRL Warranties but CRL have not gone bust


The warranties arranged with CRL/Alpha Insurance, whether they were in the process of being built or whether they have been issued in the last 10 years are no longer valid. No doubt CRL are trying to provide some solutions but in the interim lenders have been alerted to the problem and are reacting.


The situation is complicated further by the creation and development of the Consumer Codes for New Homes which lenders will also take into account when they decide whether to accept a warranty. Currently CRL are not accepted for a Consumer Code and therefore certain lenders will not lend on their warranty for some developments.


The demise of Alpha has resulted in the alternative insurers receiving so many enquiries that they are struggling to respond quickly. That workload means that the solutions are generally not quick. In addition, the cost will be more expensive than originally because it is likely CRL were the most competitive when the developer originally decided to place cover with them. The "new" insurers will not have the benefit of the regular inspections during the build and will therefore factor that in to their costs.


In short there are solutions out there and you are best to seek professional advice from an independent insurance broker. They should be aware of the issues and be able to provide you with the right advice for your building.

SallyDucati

OP - did this get sorted?

I!!!8217;m hoping to exchange next week on a completed new build, and according to the certificate that is included on the cd of docs I received via my solicitors the warranty is with CRL/Alpha (both names on certificate). Found out about the issue due to deciding to google CRL Ltd this evening, and am now panicking a bit. I!!!8217;m selling my flat to a cash buyer who is renting so hopefully he can wait if there is a delay, but wondering if I should pull out of purchase while I can.

Mrs1909

Hello, Sorry to revive an old thread but, I wondered if you had any update on how your situation has been with CRL?, We are about to complete on a new build with CRL Warranty, did either of your CRL warranties get sorted with another underwriter other than Alpha and did that satisfy the lenders or have you had to get the developer to take out another warranty with someone else?

Chezdog

Hi, has there been any update on this, are lenders now accepting CRL warranties? Any insight would be appreciated.

SallyDucati

My warranty issue is still not sorted, I get the impression CRL are promising time scales for re-cover but not sticking to them (that is just my impression from info/dates I've been given).

I think mortgage companies are accepting CRL warranties as long as they are not underwritten by Alpha.

To be honest this is souring the whole experience of buying a house I have fallen in love with. If nothing is forthcoming soon I may pull out but concerned about annoying my buyer as well. 'How long is a piece of string' has never been so frustrating!