W is for Warranties | What is actually covered in your new build investment property?

W is for Warranties | What is actually covered in your new build investment property?

Warranties. Your new build investment will come with a lot of warranties. Not just those protecting the construction and building itself, but also with appliances and installations. Then there are also gas and electrical certificates that you need to be mindful of.

Check what is under warranty and how long those warranties last.

Make sure you understand how you will get the warranties; will they be at the property on completion; will they be sent to you; and is there anything that invalidates them.

For instance, is there a specific product that must be used to clean a stone worktop, if so make sure such instructions are followed and the instructions are passed on to the prospective tenant.

All new homes in the UK are covered by a 10-year home warranty and insurance guarantee. This provides comprehensive protection against a range of eventualities, including problems with the home’s construction.

The warranty is free to the customer and is taken out and paid for by the house builder with one of the approved providers.

When you buy a new home, your warranty means you are protected in a number of ways:

  • If you have reserved a home off-plan your deposit is protected if the builder goes out of business before the work is complete. Either the deposit will be paid back or – depending on the stage of construction – the home completed.
  • Then, for the first year in most cases, any problems picked up in a new home that do not meet the warranty provider’s technical requirements must be rectified by the builder at no cost to the investor or homeowner.
  • During years three to ten of the cover, the warranty protects against a range of structural defects and for issues with items such as the double-glazing, internal plastering and staircases.

The NHBC is the U.K.’s main warranty and insurance provider, with its Buildmark guarantee covering 80% of new homes. Other schemes are operated by companies such as Build-Zone, Checkmate, LABC and Premier Guarantee.

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