Issues with new build warranty - how long would you wait?

SallyDucati · 10 July 2018 at 12:30PM

Hi,

I'm currently in the process of moving, selling my flat and buying a (completed) new build house. No issues with the sale of my flat, but the 10 year warranty on the house I'm buying is effectively non-existent at the moment. Basically the underwriters were declared bankrupt so original warranty is not valid. The sellers are trying to sort out new cover, but the original company went bankrupt on 8th May and the brokers seem to be dragging their feet and promising deadlines that they aren't sticking to for arranging warranties with different underwriters.

My thoughts at the moment are maybe I should pull out of the purchase and look for something else quickly. There are a couple of houses on Rightmove that I could be interested in, both with no onward chain. I'm stuck in a 'how long is a piece of string' quandry. I could pull out and the warranty is sorted very shortly afterwards. I could be waiting weeks. I could offer on another house and there are issues/delays with that. I think I need to set myself a deadline to make a decision -possibly the beginning of next week.

Any advice from you lovely helpful people?

Thanks

Sally

SallyDucati · 11 July 2018 at 11:55AM

Well luckily I've heard from my estate agent that my buyer can wait so that's a bit of a relief, but I still don't want to leave it open ended. Thinking beginning of next week might be too soon now, give it a couple of weeks?

Thanks

Sally

westernpromise · 11 July 2018 at 12:53PM

Can you not make it a condition of exchange that replacement cover is in place by then?

ComicGeek · 11 July 2018 at 1:21PM

I can't see that there would be many insurers wanting to take the risk on that, particularly when they aren't able to be party to the inspections etc that have already been undertaken as the property is completed. It's a major issue with Alpha going bust, and each scheme/plot is being looked at individually which is taking so long.

It might be tomorrow, next month or never. If there are other options available I personally would be setting a final date, and then moving on.

SallyDucati · 11 July 2018 at 1:30PM

Thanks for replying. I definitely won't be exchanging until/unless there is another warranty in place. It's how long that will be that I am concerned with.

SallyDucati · 11 July 2018 at 1:35PM

ComicGeek wrote: »

I can't see that there would be many insurers wanting to take the risk on that, particularly when they aren't able to be party to the inspections etc that have already been undertaken as the property is completed. It's a major issue with Alpha going bust, and each scheme/plot is being looked at individually which is taking so long.

It might be tomorrow, next month or never. If there are other options available I personally would be setting a final date, and then moving on.

Thanks, this is what I am thinking which is a real shame as I love the house! What I find really frustrating is the lack of info coming through other than the broker promising dates and not sticking to it.

I'll give it to the end of next week and make a decision then

SallyDucati · 20 July 2018 at 11:39AM

Still no news so I'm viewing another house tomorrow, 16 years old so no warranty issues!!

If I like it and can see myself living happily there then highly likely I'll pull out of the new build purchase and offer on this one.

Warrantyexperts · 20 July 2018 at 12:33PM

There are plenty of insurers of warranties out there who will take on buildings that are completed and still within the 10 year period. In view of the CRL/Alpha issues in the market there are lots of people with this predicament. If you need some recommendations of where to try then let me know.

The issues are that the prospective insurers will charge more because they don't have the benefit of the inspections during the build, but they will provide cover that is acceptable to lenders.

SallyDucati · 20 July 2018 at 1:24PM

Warrantyexperts wrote: »

There are plenty of insurers of warranties out there who will take on buildings that are completed and still within the 10 year period. In view of the CRL/Alpha issues in the market there are lots of people with this predicament. If you need some recommendations of where to try then let me know.

The issues are that the prospective insurers will charge more because they don't have the benefit of the inspections during the build, but they will provide cover that is acceptable to lenders.

Thanks, but it's not me that needs to sort a new warranty out it's the vendors responsibility.

sal_III · 20 July 2018 at 1:31PM

SallyDucati wrote: »

Thanks, but it's not me that needs to sort a new warranty out it's the vendors responsibility.

Yeah but if you really like the place you can point them to that solution and see if they like it.

Or you can see if you can sort it out yourself and ask them to knock the cost off the price of the house.

By all accounts CRL are doing F all to sort out the mess on their end.

SallyDucati · 20 July 2018 at 2:02PM

sal_III wrote: »

Yeah but if you really like the place you can point them to that solution and see if they like it.

Or you can see if you can sort it out yourself and ask them to knock the cost off the price of the house.

By all accounts CRL are doing F all to sort out the mess on their end.

The developers are already supposed to be looking at other providers , just not sure how proactive they are being, I didn't think about trying to organise it myself for just the one house rather than the developer doing it for all the houses on the development that are not yet sold - thanks for that idea I will look into it.

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Issues with new build warranty - how long would you wait?

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