CRL warranty on new build property

RN762774

Hi All

I am new to this forum but I am looking for some advice.


I offered on a new build which was accepted around 4 weeks ago. My solicitor has been doing his DD and notes that the building is covered by a CRL warranty (a smaller firm, apparently new builds are usually covered by a NHBC warranty).


On researching CRL I note that a tranche of warranties were underwritten by an insurance firm called Alpha (which ceased earlier this year) and another firm called Casualty and General Insurance which is still trading. The property I have offered on is covered by C&G. CRL has since ceased trading as of three weeks ago, however the warranty with C&G is still effective.


My major concern is whether the property will be harder to sell in the future due to the CRL warranty provider going under and if C&G happen to go under at a point in the future, whether the property would become un-mortgageable.


I have spoken to the vendors solicitors / my mortgage broker and my solicitor and I feel like I can't get a straight answer out of any of them as it seems to be quite a rare situation.


Any advice / thoughts you could share on this topic would be greatly appreciated!


Thanks in advance!

sal_III

Have you checked the big thread on the matter, just 10 posts bellow?

https://forums.moneysavingexpert.com/discussion/5827521/crl-warranty-not-accepted

eddddy

richard_norcott wrote: »

My major concern is whether the property will be harder to sell in the future due to the CRL warranty provider going under and if C&G happen to go under at a point in the future, whether the property would become un-mortgageable.

If C&G go under, then I guess your property could become unmortgageable.

Alpha and CRL going bust doesn't necessarily imply that C&G might go bust - but it all sounds a bit murky. I think I'd be more comfortable with a different insurer.

You could ask the developer if they're prepared to arrange a warranty through another provider, but it would probably cost them a few thousand and be a lot of work - so I suspect they'd refuse.

(There are also reports of people paying CRL for policies, but CRL hadn't paid the insurers before going bust, so the policies were void. I guess that could have happened to your developer.)

Your solicitor will have to report the warranty situation to your mortgage lender. If they say "no", I guess the decision is made for you.