Retrospective Warranty

TheBeast

Hello all,

Currently in the middle of a very long drawn out house purchase due to job relocation.House is just over 5 years old.

At the 11th hour my lender (Santander) declined the mortgage due to a missing 10 year warranty. Vendor has agreed to purchase a retrospective warranty so we can proceed but can anyone advise on whether lenders (especially Santander) accept these retrospective warranties or are they being hyper critical about the warranty being missing from the start? I want to believe that retrospective warranties wouldn't exist unless they were accepted but so much has gone wrong with our move this would be the icing on the cake of failure!

Many thanks

TheBeast

ACG

https://www.cml.org.uk/lenders-handbook/englandandwales/question-list/1913/

Edit: Sorry, the phone rang as I was typing this out.

This is a list of lenders and the warranty they will accept. The only company I have had any dealings with is global home warranties, but I am not sure if they do retrospective or one off properties but they were helpful so could be worth giving them a call.

kingstreet

I would ask Santander what it will accept (and also check out other lender requirements) before making any plans.

TheBeast

Cheers for the replies. Santander are not being entirely helpful as they are passing all responses through Legal and General (valuers under external contract) and they have an urgent response time of four days!

Fingers crossed they accept the retrospective warranty.

Thrugelmir

Is the property a self build?

russ_fae_fyvie

Be very interested in how you get on. We have just finished a self build (moved in 3 months ago)and we didn't think we would need a mortgage but increased costs mean we now do but as the house was not build by an NHBC Builder we also do not have a Structural Warranty. I have applied for Equity Release but up to now, nobody accepts a retrospective warranty, given all I've read about them I can't see why Lenders are so awkward. I have now paid out to get one done as was provisionally told we 'may' get one from another Lender but surely if the Warranty is approved, and the 'insurance' covers the possible structural defects then why/how can anyone refuse it ?

Thrugelmir

russ_fae_fyvie wrote: »

I can't see why Lenders are so awkward.

The property is the security for the debt. Lenders business is finance not housebuilding. Therefore in the event of a default they want an asset that's easily liquefiable with minimum fuss. Time for them costs money.

davidmcn

russ_fae_fyvie wrote: »

surely if the Warranty is approved, and the 'insurance' covers the possible structural defects then why/how can anyone refuse it ?

They're refusing it (presumably) because it's not generally accepted by other buyers/lenders (which can be a rather chicken and egg situation). Lenders want something they can flog off easily at the expected value.

russ_fae_fyvie

I can appreciate that but if the 'Insurance' covers the cost of any possible rebuild, then whether its retrospective or not, if the Insurance/warranty is in place, I can't see why they would refuse it ?

Rainbowgirl84

russ_fae_fyvie wrote: »

I can appreciate that but if the 'Insurance' covers the cost of any possible rebuild, then whether its retrospective or not, if the Insurance/warranty is in place, I can't see why they would refuse it ?

Because they can if it's their policy to do so as there could have experienced historical problems with retro warranties. No lender is compelled to lend to you because you think they should.

gj373

Is this not something your solicitor should be dealing with?