Since the relaxation of permitted development rights in 2012, the popularity of conversion projects has understandably soared. However, over the last 6-12 months, insurers have been looking to restrict their exposure to conversion projects, and as such, Building Warranties and Latent Defect underwriters have imposed steep price increases and, in many cases, ceased to offer quotes on conversion developments
The changes in underwriting appetite are driven by the high claims rates we have seen across the construction industry in the last 2 years. This knock-on effect is set only to be compounded by recent changes in Building Warranty and Latent Defect underwriting market itself. A number of well-regarded insurers saw their binders go un-renewed which as a result has left a larger gap in the LDI market for both residential and commercial cover.
With the majority of the units produced through PD looking to fit the governments’ Help to Buy scheme criteria, it is even more essential that the ability to raise a mortgage is not jeopardised. Those underwriters that can offer terms now require increasingly more in-depth information of both the site and the parties involved in the project. It is here that broker relationships are able to pay a dividend to clients.
Benefits of a conversion warranty:
- 10 Year cover from the date of practical completion.
- Accepted by High Street Banks
- Enables sale of units: Without a warranty, you will not be able to sell a house, where the purchaser intends to raise a mortgage
About BuildSafe
BuildSafe is the trading style of London Belgravia Brokers. Its experts have over 40 years of experience in the property sector so you can be assured that they will handle your conversion warranty with good care. BuildSafe manages the entire process, enabling you to focus on the day to day running of your project.
To speak with one of their advisors regarding a conversion warranty, fill in the contact form or call them on 020 3701 0422.
