New build warranties

newbuildrookie

Hi all,
I’m hoping you can help.
There is a new build house we have fallen in love with! It’s the perfect size, location and looks great! 
I do however have some concerns. It’s been on the market 18 months , (in a high demand area), it’s asking price has fallen by 30% , at least 1 previous sale has fallen through, maybe more. We have just agreed to buy it and the estate agent will take off the market.
It does not have a NHBC warranty and is going through another warranty provider. One of the neighbors mentioned it couldn’t sell before because it had some  flooding issues during the build. None of this was mentioned by the estate agent.
I guess the questions are:
1) should I be ok to proceed if building regs and the other warranty provider sign off?
2) What should I ask my solicitor to find out? And
3) what should I be doing now? I can’t get a mortgage until I have a warranty, so I’m currently in a holding pattern.
Thanks for all your help, I’m a clueless novice here!

pinkteapot

You can still apply for your mortgage. The mortgage company won't release funds (i.e. allow you to complete) until the warranty is in place but you get your application going now while the builder is getting the warranty sorted. We bought a new-build last year and applied for our mortgage while it was still being built. At the end of the process, completion was delayed for a couple of weeks because there was a delay issuing the warranty.

I'd be slightly worried about why they haven't got the warranty before now, but on the other hand it's good news for you - warranties start from the day the builder takes them out. If it had been done when the house was finished you'd already be 18 months into it - and near the end of the initial 2-year period where you're covered for everything (years 3-10 are major structural problems only). May be that the builder has waited until finding a buyer so they get the benefit of the full warranty length.

Flooding - you can look at the flood risk on the Environment Agency database - check flood risk from both rivers and surface water. 
https://www.gov.uk/check-flood-risk

Your solicitor can raise enquiries - lists of questions that they send to the vendor's solicitor that get answered in writing and form part of the contract. Ask them to ask about the property's flood history. 

thearchitect

Firstly, a warranty and the flooding are completely seperate issues.  The former will not normally cover the latter.

Secondly, you need to determine who the warranty provider is and extent of cover.  Not all are equal.  By way of example, take a look at Premier's policies for "New Home" and "Completed Housing".  The differences can be important in the event of a claim for certain events.

newbuildrookie

Thank you architect and pink teapot.

pink teapot- I think the flooding was more that the building site was not water tight and damaged floors etc. I’ll ask the solicitor to put the formal queries in writing and adjust the contract if needed.

thearchitect - the warranty provider is expected to be global home warranties. I have no other details yet. I ask the solicitor about this to.

any other advice on this would be much appreciated, would you get a full survey, home buyers report or just a snagging list?

UnderOffer

Building site not water tight? As in no roof or partial roof and rain water leakage? I’d investigate more on this, perhaps the previous potential buyers found something out which made them withdraw. Is it worth getting some home buildings insurance (and contents) quotes to check the property can be insured? You’d soon find out if it’s not insurable or ridiculously high. 
 I’d definitely get full survey too. Peace of mind and all that. 

newbuildrookie

Thanks underoffer