Warranty change is latest Leeds move to help new build
Leeds Building Society continues to work with developers, industry bodies and its intermediary partners to find more ways it can support the new build sector.
The Society’s latest improvement to criteria has widened the range of warranties it will accept on new homes, a step taken in response to feedback from smaller developers.
This means a range of warranty schemes, in addition to the NHBC, will be considered as long as they give consumers appropriate protection.
“There’s a widely-shared view that increasing housing supply is an absolute priority for the UK, although opinions differ as to how this can be achieved,” said Martese Carton, Leeds Building Society’s Head of Intermediary Distribution.
“We’re doing what we can as a lender to support developers by strengthening our new build proposition, such as broadening the range of warranties we accept on new build properties.
“The Society reviewed this position after developers raised concerns about warranty costs so we’ve worked with our surveying partner, Countrywide Valuation Services, to identify which warranty schemes provide appropriate consumer protection.
“This means developers can consider alternative warranty schemes without compromising the ability of purchasers to secure a mortgage.
“We hope the move demonstrates our continued commitment to supporting the new build sector.”
Leeds Building Society has improved its new build proposition, including:
- increasing LTV (loan to value) on new homes, up to 90% on houses and 85% on flats;
- creating a dedicated new build underwriting team;
- introducing specific criteria to support Modern Methods of Construction;
- ensuring offers and valuations are valid for six months.
The Society was the first lender to declare support for Help to Buy London, and the first to offer a dedicated H2B remortgage deal including fees assisted legal services, as well as having a significant market share of new build Shared Ownership.
The Society will accept warranties on new properties and conversions built in the last 10 years from the following:
- Advantage HCI
- Build Assure
- Building Life Plan (BLP)
- Build Zone
- Castle 10 (sometimes called Checkmate)
- CRL 10 Year Structural Defects Insurance Policy
- Global Home Warranties 10 Year Structural Defects Insurance Policy
- NHBC (National House Building Council)
- ICW (International Construction Warranties)
- Q Policy
- Zurich Municipal Scheme (for cover issued up to 30th September 2009)
- A Professional Consultants Certificate (PCC) may be accepted if signed by a corporate member of the BIAT, RIBA or RICS and accompanied by evidence of Professional Indemnity cover.
Leeds Building Society won the awards for Best Building Society Savings Provider and Innovation in Personal Finance (Part and part mortgages) at the 2016 Moneyfacts Awards.
Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £15.9bn (at 31st December 2016). The Society’s head office has been based in the centre of Leeds since 1886.