Struggling to get an advance for a new construction project from your mortgage lender? Most lenders in the UK require a recognised new build warranty as a condition of lending, and without one you could be refused a mortgage.
Without a new build warranty you could face setbacks that will slow down your entire project timeline:
- Sales can stall when buyers’ mortgage applications bounce back
- Solicitors can hold up completion until the documentation is confirmed
- Capital won’t be released to help fund your ongoing build costs
If you are mid-construction and haven’t registered with a provider yet, or you’re unsure which of the main providers your buyers’ lenders will accept, these setbacks can turn a scheme that’s ready to sell into one that’s stuck in limbo.
In this guide we explore everything a developer needs to arrange a warranty with confidence from: what a new build warranty is, the two-period structure of a 10-year structural warranty, what a new build warranty covers, and what is not covered.
By the end, you’ll know exactly what to check for and when to act, so you can register on time and choose a provider that suits your specific project needs.
What Is a New Build Warranty or Structural Warranty?
A new build warranty, also known as a structural warranty, building warranty, or 10-year structural warranty, provides cover against structural defects that emerge in a property after a construction project is completed.
A new build warranty goes hand in hand with a standard building insurance. A lender may typically require both. Standard building insurance covers events like fire, storm and flood, while a new building warranty covers defects arising from the way the property was designed and built during the foundational phase.
Structural defects usually take years to surface, while a builder’s direct liability under contract law is time-limited and often difficult to enforce years after project completion.
It’s worth weighing up different warranty options and understanding the two-period structure that a structural warranty hinges on. You don’t have to work this out alone from policy wording, our team at Checkmate can explain how this applies to your specific scheme at quotation stage.
The Two-Period Structure
A new build warranty typically runs for 10 years from legal completion, split into two distinct periods that work in different ways:
1 – 2 years: the builder’s defects liability period
During this period, after project completion, the builder holds full responsibility for fixing defects according to law. If a window doesn’t seal properly, a door frame is out of true, or plaster cracks appear – these issues must be reported to the builder who is contractually obliged to repair them. The warranty provider typically offers a resolution service if the builder disputes the issue or fails to act, but the builder remains the first point of contact.
3 – 10 years: structural insurance cover
Once the defects liability period ends, cover shifts to insurance provided directly by the warranty provider which covers physical damage to specific structural elements that goes beyond the range of snagging
issues covered in the first two years.
The structure is designed this way to coincide with how long structural issues take to surface. Workmanship issues tend to show up quickly; genuine structural problems, like inadequate foundation design, often take years to become visible.
What a New Build Warranty Doesn’t Cover
A new build warranty is not a general maintenance policy, and the exclusions catch out buyers and developers who assume broader cover than the policy provides. Here is what generally isn’t covered:
- Cosmetic defects after year 2: once the builder liability period ends, minor
cosmetic issues like small cracks in plaster or decorative finishes are
generally not covered, even if they existed before the second year and
were never reported. - Wear and tear: gradual deterioration through normal use and ageing is excluded
under any structural warranty, at any stage of the term. - Mechanical and electrical (M&E) systems: boilers, wiring, plumbing and similar systems
typically fall outside the warranty and are usually covered separately, if
at all, under manufacturer warranties or buildings insurance. - Owner alterations: damage resulting from changes the owner makes
to the property after purchase, like removing a wall or altering drainage. - Damage from external events: flood, storm, fire and similar events are the
domain of buildings insurance, not the structural warranty.
Transferability: A Commercial Advantage
A new build warranty covers the property, not the original buyer. If the property is sold within the 10-year term, the remaining cover transfers automatically to the new owner.
For developers, this is a genuine commercial advantage: a property with several years of warranty cover remaining is easier to sell and easier to mortgage than one without.
New Build Warranty Providers in the UK
There are several lender-approved providers of new build warranties in the UK. Checkmate is one of them. We provide 10 and 12-year structural warranties as a part of our Latent Defect Insurance (LDI), a specialist alternative.12- year warranties are typically required by Housing Associations. Our LDI is also suited to developers working across residential, mixed-use and more complex commercial schemes where a tailored underwriting approach is valuable.
Choosing a specialist new build warranty provider over the largest one is not a compromise; it is a legitimate decision which should be led by the complexity of the scheme in question, the level of service required and how the provider’s technical standards fit the build.
Get Started: Arrange Your Warranty
If you need to register a scheme, or your solicitor has flagged that you’ll need a new build warranty before completion – the right time to arrange cover is early.
Our process is built to keep this simple. You can get a quote in minutes with no lengthy forms or delays. Once you’re ready to proceed and your site is registered and approved a certificate is issued with ease.
We also provide expert risk assessment and dedicated site inspection support to ensure your build is
compliant and protected from start to finish. Our policies are designed to meet the requirements of the UK’s leading mortgage lenders.
Whether you’re building a single unit or a large multi-phase scheme, our team works with developers at every scale, from new build homes and affordable housing through to mixed-use schemes for housebuilders, developers, and housing associations.
Find out more about our Latent Defects Insurance or request a quote.
