New Home Warranty Cover Case Study: Conversion of 9 Agricultural Barns Into Dwellings (West Chevington Farm)
Published by BuildSafe on 11th January 2021 -
New Home Warranty Cover
Buildsafe advised and helped procure a New Home warranty for the conversion of 9 agricultural barns to habitable dwellings. This insurance is provided in order to allow developers to sell or refinance the project upon completion & covers structural defects that arise from new works carried out to convert a property, as well as complete failure.
Northern Business Management LLP undertook the build & looked after all design and constructional features of the development on behalf of Platinum Homes Limited.
All barn conversions encounter the same first problem – Finding an insurer prepared to offer latent defect cover. The insurance market does not look favourably on these types of conversions, especially when they are grade 2 listed. Developers can spend significant time and money scouring the market and still not find an appropriate solution. Typically, if developers can find a provider open to covering the site, they will request a bond and/or escrow to be put in place, which ties up their capital.
Our clients that have barn conversion schemes, benefit from our experience – We know who to approach, with what information. We understand the risk from both sides and the importance, wherever possible, of removing the need for a bond or escrow.
Additionally, we are on hand throughout to help out clients with any queries or issues that may arise as well as delivering the final certificates upon completion. In this one instance the client’s financer raised a last minute requirement and wanted confirmation that the tanking system was approved by the warranty provider. Failure to meet this deadline would have delayed the funding by 4 weeks. As a result of our experience and relationships, we were able to obtain the evidence required and provide a full, detailed and satisfactory response within 24 hours. Allowing the client to receive his funds and proceed as planned.
Buildsafe have a wealth of experience in the UK property sector having worked with some major developers and global investors . We have covered over 10,000 properties, having build cost insurance over £3.2bn. For more information, please call us on 020 3701 0422 or fill in our contact form