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  • FIRST POST
    • SallyDucati
    • By SallyDucati 10th Jul 18, 12:30 PM
    • 70Posts
    • 43Thanks
    SallyDucati
    Issues with new build warranty - how long would you wait?
    • #1
    • 10th Jul 18, 12:30 PM
    Issues with new build warranty - how long would you wait? 10th Jul 18 at 12:30 PM
    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
Page 1
    • SallyDucati
    • By SallyDucati 11th Jul 18, 11:55 AM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    • #2
    • 11th Jul 18, 11:55 AM
    • #2
    • 11th Jul 18, 11:55 AM
    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
    • By westernpromise 11th Jul 18, 12:53 PM
    • 4,263 Posts
    • 5,543 Thanks
    westernpromise
    • #3
    • 11th Jul 18, 12:53 PM
    • #3
    • 11th Jul 18, 12:53 PM
    Can you not make it a condition of exchange that replacement cover is in place by then?
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • ComicGeek
    • By ComicGeek 11th Jul 18, 1:21 PM
    • 325 Posts
    • 259 Thanks
    ComicGeek
    • #4
    • 11th Jul 18, 1:21 PM
    • #4
    • 11th Jul 18, 1:21 PM
    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
    • By SallyDucati 11th Jul 18, 1:30 PM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    • #5
    • 11th Jul 18, 1:30 PM
    • #5
    • 11th Jul 18, 1:30 PM
    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
    • By SallyDucati 11th Jul 18, 1:35 PM
    • 70 Posts
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    SallyDucati
    • #6
    • 11th Jul 18, 1:35 PM
    • #6
    • 11th Jul 18, 1:35 PM
    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.
    Originally posted by ComicGeek
    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
    • By SallyDucati 20th Jul 18, 11:39 AM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    • #7
    • 20th Jul 18, 11:39 AM
    • #7
    • 20th Jul 18, 11:39 AM
    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
    • By Warrantyexperts 20th Jul 18, 12:33 PM
    • 12 Posts
    • 2 Thanks
    Warrantyexperts
    • #8
    • 20th Jul 18, 12:33 PM
    • #8
    • 20th Jul 18, 12:33 PM
    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
    • By SallyDucati 20th Jul 18, 1:24 PM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    • #9
    • 20th Jul 18, 1:24 PM
    • #9
    • 20th Jul 18, 1:24 PM
    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.
    Originally posted by Warrantyexperts
    Thanks, but it's not me that needs to sort a new warranty out it's the vendors responsibility.
    • sal_III
    • By sal_III 20th Jul 18, 1:31 PM
    • 644 Posts
    • 657 Thanks
    sal_III
    Thanks, but it's not me that needs to sort a new warranty out it's the vendors responsibility.
    Originally posted by SallyDucati
    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
    • By SallyDucati 20th Jul 18, 2:02 PM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    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.
    Originally posted by sal_III
    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.
    • Warrantyexperts
    • By Warrantyexperts 20th Jul 18, 4:22 PM
    • 12 Posts
    • 2 Thanks
    Warrantyexperts
    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.
    Originally posted by SallyDucati

    When a property is going through a sale it often becomes a negotiation point as to who pays for the warranty. The truth is that nobody wants to and that the only reason for purchasing the warranty is to tick the box for the lender. The insurance cover is largely secondary. When the costs run into the thousands you can understand why nobody wants to pay. You can get a rough cost over the phone and then point whoever in the right direction. Might help you get the house if you like it.....
    • ProDave
    • By ProDave 20th Jul 18, 5:04 PM
    • 1,058 Posts
    • 1,307 Thanks
    ProDave
    Unless it is a mortgage condition, I would not bother. From many reports I have seen, these 10 year warranties are worthless and it is nigh on impossible to get them to pay out or fix any issues that occur.

    If the old one has gone bankrupt, it is probably hard to get anyone else to take it on, as the new provider has not done the stage inspections during the build so are even more likely to wriggle out of a claim and deny responsibility.
    • SallyDucati
    • By SallyDucati 21st Jul 18, 9:28 PM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    Unless it is a mortgage condition, I would not bother. From many reports I have seen, these 10 year warranties are worthless and it is nigh on impossible to get them to pay out or fix any issues that occur.

    If the old one has gone bankrupt, it is probably hard to get anyone else to take it on, as the new provider has not done the stage inspections during the build so are even more likely to wriggle out of a claim and deny responsibility.
    Originally posted by ProDave
    It is a mortgage condition, and also a buildings insurance I think.
    • SallyDucati
    • By SallyDucati 21st Jul 18, 9:37 PM
    • 70 Posts
    • 43 Thanks
    SallyDucati
    I!!!8217;ve been to see the other house and unfortunately it!!!8217;s a no go. Tiny kitchen and has had a leak in the roof that hasn!!!8217;t been fixed.

    Apparently the vendors are now waiting for quotes from new providers to come through so at least some progress, back to the waiting game! My buyer is OK to wait but making noises about reducing his offer to compensate for additional rent if it takes much longer (cash buyer so longer it takes the more it costs him in rent).
    • Warrantyexperts
    • By Warrantyexperts 23rd Jul 18, 11:09 AM
    • 12 Posts
    • 2 Thanks
    Warrantyexperts
    Unless it is a mortgage condition, I would not bother. From many reports I have seen, these 10 year warranties are worthless and it is nigh on impossible to get them to pay out or fix any issues that occur.

    If the old one has gone bankrupt, it is probably hard to get anyone else to take it on, as the new provider has not done the stage inspections during the build so are even more likely to wriggle out of a claim and deny responsibility.
    Originally posted by ProDave

    I'd agree on the first point, although most people wouldn't benefit from a warranty if it hadn't already been purchased by the developer. The problem there is that the developer has no interest in how good and responsive the warranty is because they never claim on it and therefore it almost always comes down to price.


    The second point is completely and utterly wrong I'm afraid. There are many warranty providers in the market and most will take on a completed unit. They price the increased risk that arises from not having completed inspections into their premium costs. In most cases they double the cost that would have originally applied. In some cases, where the CRL/Alpha issues have arisen they may accept the inspections already completed if the customer can produce the records.


    Different warranty providers take different approaches to the warranty risk and there are around 15 providers nowadays, all with different criteria and different levels of acceptance by lenders.
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