Structural warranties for stalled, rescued and taken-over sites
A site that stopped for a year or more, a developer that went into liquidation, a new owner picking up a half-finished scheme. An earlier warranty may not carry over to a new owner - but specialist providers may consider cover for the restart.
- Instant response
- An honest answer, early
- UK FCA Regulated Broker
- 10 and 12 year cover
- Part built and finished projects
Picking up the pieces
Why a stalled site needs a fresh look at its warranty
Sites stall for all sorts of reasons. The money runs out, a contractor fails, a developer goes into liquidation, or a project simply sits while the market changes. When work restarts, often under a new developer or a new funder, the warranty question comes back with it.
If a warranty was registered before the stall, do not assume it carries over to a new developer - and do not assume it is lost either. A registration is usually tied to the original developer and to the work the provider has seen, so get the original provider's position in writing first. Some providers will continue or amend a registration for a new developer. If the provider will not, the new owner needs cover in its own name - which means a retrospective case for everything already built.
What providers worry about
The extra questions on a stalled or rescued development
Time and a change of hands add risk that the provider has to understand before it can offer terms.
Weather and exposure
Work left open for months can suffer - timber, blockwork, steel and anything left unprotected. The provider will want to know how the site was protected while it stood.
Missing records
When the original developer has gone, drawings, calculations and inspection records can go with it. Tracking them down early makes a real difference.
Who built what
The provider needs to know which work was done by the original contractor, which by the new team, and how the rest of the build will be managed.
Changes to the scheme
A new developer often changes layouts, specification or the number of units. The provider will review the design as it will now be built.
Taking over a site?
What to do before work restarts
- Find out what warranty, if any, was registered and ask that provider in writing whether it will continue - but be ready to need your own cover
- Collect everything you can from the administrator or the previous developer: drawings, calculations, building control records and photographs
- Record the condition of the site as you take it over, with dated photographs
- Talk to us before new work covers up anything from the earlier phase
Funders of rescued sites often make a structural warranty a condition of lending. The sooner the question is raised, the less likely it is to hold up drawdown.
Stalled and taken-over sites - questions
Does the original developer's warranty transfer to me?
Not automatically. A registration is normally tied to the original developer and the work the provider inspected, so ask the original provider first - some will continue or amend a registration for a new developer. If it will not, a new developer generally needs its own cover, which the provider treats as retrospective for the work already built.
The developer went into liquidation - can the site still get a warranty?
Possibly. Specialist providers do consider taken-over sites, but they will want evidence of the earlier work and a look at the condition of the site now. Records from the administrator or the previous consultants can help a great deal.
How long can a site stand before it becomes a problem?
There is no fixed rule. What matters is the condition of the work and how well it was protected. A site that stood for a year or more with little protection will need a careful look.
We bought a part-built site - where do we start?
With the evidence. Find out which records exist, photograph the site as it stands and tell us your plan for completing it. We will say whether providers are likely to consider it and what they will ask for.
Restarting a stalled site?
Tell us what has been built, how long it stood and who is completing it. We will tell you whether providers are likely to consider it and what they will want to see.
- Takes under a minute
- Instant reply by email with your reference
- We call you, usually the same working day, with an honest view of what is possible
- Part built and completed sites across England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
