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  • FIRST POST
    • Dave234
    • By Dave234 13th Apr 18, 5:17 PM
    • 7Posts
    • 1Thanks
    Dave234
    CRL warranty not accepted
    • #1
    • 13th Apr 18, 5:17 PM
    CRL warranty not accepted 13th Apr 18 at 5:17 PM
    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.
Page 1
    • davidmcn
    • By davidmcn 13th Apr 18, 5:25 PM
    • 9,075 Posts
    • 9,663 Thanks
    davidmcn
    • #2
    • 13th Apr 18, 5:25 PM
    • #2
    • 13th Apr 18, 5:25 PM
    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.
    Originally posted by Dave234
    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
    • By Dave234 16th Apr 18, 11:12 AM
    • 7 Posts
    • 1 Thanks
    Dave234
    • #3
    • 16th Apr 18, 11:12 AM
    • #3
    • 16th Apr 18, 11:12 AM
    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
    • By TimNoble 18th May 18, 12:51 PM
    • 1 Posts
    • 0 Thanks
    TimNoble
    • #4
    • 18th May 18, 12:51 PM
    CRL Warranty
    • #4
    • 18th May 18, 12:51 PM
    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
    • deannatrois
    • By deannatrois 18th May 18, 1:19 PM
    • 5,700 Posts
    • 7,988 Thanks
    deannatrois
    • #5
    • 18th May 18, 1:19 PM
    • #5
    • 18th May 18, 1:19 PM
    https://www.buildingandland.co.uk/2018/05/11/alpha-insurance-residential-warranties-aware/

    https://c-r-l.com/alpha-statement/
    • kingstreet
    • By kingstreet 18th May 18, 2:04 PM
    • 34,347 Posts
    • 18,655 Thanks
    kingstreet
    • #6
    • 18th May 18, 2:04 PM
    • #6
    • 18th May 18, 2:04 PM
    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+
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Warrantyexperts
    • By Warrantyexperts 7th Jun 18, 9:41 AM
    • 18 Posts
    • 2 Thanks
    Warrantyexperts
    • #7
    • 7th Jun 18, 9:41 AM
    • #7
    • 7th Jun 18, 9:41 AM
    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
    • By SallyDucati 22nd Jun 18, 11:58 PM
    • 76 Posts
    • 47 Thanks
    SallyDucati
    • #8
    • 22nd Jun 18, 11:58 PM
    • #8
    • 22nd Jun 18, 11:58 PM
    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
    • By Mrs1909 2nd Jul 18, 9:21 PM
    • 1 Posts
    • 0 Thanks
    Mrs1909
    • #9
    • 2nd Jul 18, 9:21 PM
    • #9
    • 2nd Jul 18, 9:21 PM
    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
    • By Chezdog 9th Jul 18, 3:14 PM
    • 1 Posts
    • 0 Thanks
    Chezdog
    Hi, has there been any update on this, are lenders now accepting CRL warranties? Any insight would be appreciated.
    • SallyDucati
    • By SallyDucati 9th Jul 18, 5:05 PM
    • 76 Posts
    • 47 Thanks
    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!
    • Relfer
    • By Relfer 14th Jul 18, 10:20 AM
    • 1 Posts
    • 0 Thanks
    Relfer
    I was in the process of applying for a mortgage to purchase a new build flat in Woking (Colborne Place), paid for a valuation through the Halifax and received a letter from them stating that they were unable to value the property due to the CRL issues. Apparently other large lenders are taking CRL off the approved list. I was advised by my broker that I could still apply for a mortgage with Metro bank, but my fear is that Merto will catch up with the other lenders and also remove CRL from the list at some point. I therefore asked to withdraw from the purchase altogether, as I was concerned about buying the flat and then being unable to sell it on in the future. The developer refused to return my reservation fee, advising that the problem with consumer codes would be worked out by the end of this month and essentially said I have nothing to worry about. I am now in a quandary and unsure whether to proceed or not. This would be my first foot on the housing ladder and I am borrowing half of the money to fund the deposit, hence my hesitation to proceed. I was wondering if anyone that has already exchanged is now in a position where their mortgage lender has been in touch to state that they no longer accept CRL? I am still considering using a lender that do accept CRL currently but worry about what could happen if they then strike CRL from the list and unsure of what would happen next. Any guidance would be appreciated!
    • sal_III
    • By sal_III 14th Jul 18, 11:51 AM
    • 653 Posts
    • 666 Thanks
    sal_III
    The developer should refund at least part of your reservation fee, based on what stage of the process they are. Look at the details about that in the reservation form.

    Not only that the property might be harder to sell in the future, there is a chance that your warranty might not hold. If CRL don't sort this soon there will be more financial trouble for them, since they don't have insurance to cover their warranty.

    Also you mentioned that you are borrowing half of your deposit - make sure to mention that to your mortgage Lender and be prepared for them to be unhappy about the fact.
    • SallyDucati
    • By SallyDucati 16th Jul 18, 11:03 AM
    • 76 Posts
    • 47 Thanks
    SallyDucati
    I think some insurers are now accepting CRL cover as long as it is not underwritten by Alpha (eg. Nationwide). I'm also currently in the process of buying a completed new build house with the original warranty provided by CRL/Alpha. CRL have been very slow to get back to the developers with a re-quote and looking at reviews on their facebook page seems that is par for the course at the moment.

    The developers I am buying off are now looking for cover with another broker/provider as they are fed up waiting and losing sales. Maybe get an update on what the developers are doing about alternative cover, I think going with a different provider is the best solution in my case as CRL will no longer be involved.
    • Warrantyexperts
    • By Warrantyexperts 18th Jul 18, 1:14 PM
    • 18 Posts
    • 2 Thanks
    Warrantyexperts
    The issue with CRL warranties is that the insurer is no longer trading. Therefore cover with any warranty going through the build process or having been issued with a CRL/Alpha warranty in the last 10 years will not have any insurance. From the market I understand lenders are wising up to this and are no longer accepting CRL Warranties that are backed by Alpha, whether that's a new build or a property going through a sale. The only potential recourse for a holder of a CRL/Alpha warranty is the potential to claim through the Financial Services Compensation Scheme but this is complicated by Alpha being a Danish company registered with the Danish Financial Services authority. The position is still unclear on this but holders of such warranties are advised to seek professional guidance.

    There are alternative providers who will provide cover for projects under construction or completed but you should expect to pay an increased premium with insurers. The insurers are inundated with enquiries of this nature at the moment and are slow to respond as a result so the sooner you approach them the better.

    The message is, and should always be, seek independent professional insurance broker advice. Particularly in this situation where a long term insurance is required to satisfy lenders. Alpha were an unrated offshore insurer and as a result insurance brokers would not place cover with them. Why use Alpha when there are UK based financially strong insurers available?

    More information is available online if you need it with specialists in this area updating their blogs and news items as the situation develops.
    • orlatron
    • By orlatron 23rd Jul 18, 2:03 PM
    • 1 Posts
    • 0 Thanks
    orlatron
    I was in the process of applying for a mortgage to purchase a new build flat in Woking (Colborne Place), paid for a valuation through the Halifax and received a letter from them stating that they were unable to value the property due to the CRL issues. Apparently other large lenders are taking CRL off the approved list. I was advised by my broker that I could still apply for a mortgage with Metro bank, but my fear is that Merto will catch up with the other lenders and also remove CRL from the list at some point. I therefore asked to withdraw from the purchase altogether, as I was concerned about buying the flat and then being unable to sell it on in the future. The developer refused to return my reservation fee, advising that the problem with consumer codes would be worked out by the end of this month and essentially said I have nothing to worry about. I am now in a quandary and unsure whether to proceed or not. This would be my first foot on the housing ladder and I am borrowing half of the money to fund the deposit, hence my hesitation to proceed. I was wondering if anyone that has already exchanged is now in a position where their mortgage lender has been in touch to state that they no longer accept CRL? I am still considering using a lender that do accept CRL currently but worry about what could happen if they then strike CRL from the list and unsure of what would happen next. Any guidance would be appreciated!
    Originally posted by Relfer
    Hi Relfer,

    My partner and I are in the same boat as you - we are also purchasing at Colborne and are now on hold waiting for some news on when this will be resolved. Have you had any further updates for them or have you decided to pull out of the purchase entirely?
    • nic wills
    • By nic wills 16th Aug 18, 11:17 AM
    • 2 Posts
    • 0 Thanks
    nic wills
    We are in the process of building our own house we had CRL warrenty you need in place we got our mortgage, they tol us we were with alpha an we needed to get a different policy we paid 2200 in February! But despite weeks of getting in touch we are always put to an answer machine or on hold with nobody answering our agent Carlos Montana seems to have disappeared off the face of the earth we are in limbo anyone else in the same predicament??
    • nic wills
    • By nic wills 16th Aug 18, 11:23 AM
    • 2 Posts
    • 0 Thanks
    nic wills
    CRL no matter how many time you ring or email ignore you 4 weeks now we ve been trying to connect them!!!55358;!!!56620;
    • SallyDucati
    • By SallyDucati 16th Aug 18, 11:33 AM
    • 76 Posts
    • 47 Thanks
    SallyDucati
    The developers I bought from ended up going through another broker as they were getting nowhere with CRL and had s held up in stuck sales (I moved in on Friday ). Maybe try another broker? If you look at CRLs facebook page there are quite a few reviews stating the same re. not being able to get through on the phone.
    • Retrospect23
    • By Retrospect23 17th Aug 18, 8:56 AM
    • 1 Posts
    • 0 Thanks
    Retrospect23
    Buy cheaper, buy twice!

    We had our fingers burnt and now only use those Warranty providers with access to a minimum of A rated insurers.

    We have since found One Guarantee, Q Assure and BLP to provide suitable alternatives.
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