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Development Finance & Building Warranties: Getting the Right Package

Development Finance & Building Warranties: Getting the Right Package

Purchasing a structural warranty (also known as a building warranty) has become a market standard for Developers engaging in a new build housing scheme. Not only does this form of new build insurance offer piece of mind for new home owners, it is often a fundamental requirement from lenders who are considering offering the new purchaser a mortgage.

There is a common misconception amongst developers that there is no building warranty insurance requirement for refurbishments or conversion projects. In fact, lenders now also insist on a building warranty being in place for any conversion or refurbishment where structural work is taking place. There have even been cases where lenders have refused finance on conversion projects where no structural work has taken place.

Developers should always consider that if they are undertaking works that will see a building’s use change, (typically commercial to residential) or are carrying out major refurbishment works to a residential unit, then the project will require a 10-year building warranty.

BuildSafe is well placed to assist with finance options too, as an example: on a conversion project, we can provide LT-GDV at 65% with rates starting at 6.5% pa.

If you are currently considering your warranty or finance options for your existing or upcoming scheme, please do get in touch with us to talk through how we can offer a combined warranty and finance package.

Organising both services through BuildSafe as a single point of contact will not only make the process of obtaining finance and a warranty smoother and more integrated, it can often result in gaining access to product ranges that are more cost effective or better suited to your situation.

BuildSafe: The UK’s Leading Specialist Broker of Building Warranties and Development Finance

Our ethos is based around outstanding customer service; all our brokers have experience of working in the property sector and understand a developer’s needs and frustrations that can arise in such a complex and rapidly changing industry.

Obtaining a structural warranty can be a time consuming process. We offer our clients impartial and connected advice, in what has become a crowded and potentially, overbearing market. With new entrants into both the latent-defect and development finance markets, the importance of seeking third-party advice is essential.

Please get in touch with us on 0203 701 0422 to have a no obligation conversation with our specialist brokers.

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Our team has in excess of 20 years’ experience in the UK property sector.