Don't do a Shaky (Part 2)

“This ole house is gettin' shaky This ole house is gettin' old This ole house lets in the rain This ole house lets in the cold”

Shakin’ Steven was clearly itching on a move to a new build. Whether he would get a PX deal on his description is another matter. I suspect a few category 3s would be popping up on his Home Report and as for the EPC? – best not go there! If, however, you can sell your own and do not need the help of a PX then a new build from a niche builder may just tick alot of boxes for you. Buying from a small builder can sometimes have more advantages than buying from one of the heavy hitters in the new build game. You need to tread carefully however as there is one major pitfall that could cause you a problem when you come to sell. Let me explain.

When you are buying new build it is important to clarify whether or not your builder is N.H.B.C. registered or has a similar insurance backed quality standard certificate. For many a small builder N.H.B.C. registration is expensive and is something that they can ill afford. What do you do then?

In the event that you are getting a mortgage, your lender will specify the following requirements: –

1. The architect must be certified with one or more governing bodies.

2. The architect must have sufficient professional indemnity insurance in place.

3. The architect must issue a standard supervisory certificate stating that they have visited the build during construction.

4. The architect must let you have a letter confirming that he has the necessary skill set to issue such a certificate.

The big problem is making a claim against the architect if something goes awry. With the architect backed certificate, you are wholly reliant upon the architect still being in business and having an indemnity insurance policy at the time that you make a claim. An insurance claim against an architect is a strange beast. Normally you would expect that if the architect had insurance at the time of the build and there was a subsequent claim then you would be covered. Well, you would be wrong! At the time of the claim, the architect still needs to have insurance in place as any claim is based upon when you claim rather than when the work was carried out. Crazy but true.

You can therefore make sure that the insurance is in place at the time that you buy the property but there is no guarantee that such insurance will be in place when you come to sell the property. The good news, if there is any, is that the architect’s certificate only lasts a period of 6 years, so as long as the property has been completed for more than 6 years then your lender and the prospective purchaser will not be seeking a copy of the architects current professional indemnity insurance policy.

If you are thinking of buying something more bespoke from a builder then please do get in touch as I would be glad to assist you in your purchase.