NHBC alternatives

[Palpatine]

We are in the process of purchasing a home. The building is less than 2 years old however the guy who built it did not get and NHBC certificate at the time, and has unfortunately passed away in the last week (sale now being proceeded by his widow).

In the lack of the NHBC certificate what is an appropriate alternate that could be added now by the vendor and provide us the same cover. We only expect to own the house for 2-3 years so I need something that wouldn't limit saleability in the future.

Any advice please.

[buildersmate]

I'm afraid the most solid advice is don't buy the house! Why give yourself a potential problem that is not of your making?
However if you insist on it, you should give sure you are not only getting a fat discount to the market value for your risk of potential trouble. Perhaps 5% - but that's just my guess on what I'd look for.
In addition, the existing owner (not you) should pay for a full structural survey of the property. That is your principal problem as the house is over 2 years old. Not many people realise that the NHBC warranty only considers compensating for faulty workmanship in the first two years of life - and then only if the builder (who is responsible) fails to do it. The full structural survey should be carried out by a RICS member, who who have professional indemnity insurance in the event that he says the house is OK and a problem then occurs.

[wisewomen]

I was looking at buying a flat a couple of years ago and found out that it had no NHBC Cert from when it was converted 5 years before. It turned out that the guy who did the conversations didnt even have planning permission and the drains could collapse at any moment.

Id stay well clear, the people you are buying it off may seem like the most honest people in the world but you never do know.

Its alot of money to waste to find out you have major structural work to do and I would think that you will have problems selling as well.

Sorry

[BenDToy]

Please don't be put off by this one problem. Houses which are more than 10 years old are not sold with NHBC certificates, and there are millions of them sold every year. However, if you have a full structural survey done this will highlight any problems with the construction and/or condition of the house. It also may be worth contacting NHBC or Zurich to see if they could provide cover but I can't see what that would offer. By the time 2 years have passed an NHBC or Zurich new house certificate is practically worthless anyway - believe me I know, I have tried to make claims and I found them a waste of time. Even within the 2 years, all they do is refer you back to the builder. I would also check with your mortgage lender to see what they would accept as an alternative (if any is needed).
So don't abandon this purchase on the back of a fairly worthless and unnecessary piece of paper.

[Palpatine]

Thank you for your responses.

We are still proceeding with the purchase. We have had a consultant architect view the property and obtained a certificate of satisfactory build quality that provides NHBC parity cover for the next six years. This has been accepted as appropriate cover by both our solicitor and mortgage lender.