If you buy a home that is more than 10 ten years old, it is now possible to benefit from an insurance backed guarantee covering defects, as long as they are discovered within three years of purchase.
The Homebuyers Structural Guarantee has been developed by the Property Guarantee Company Limited in conjunction with Building and Land Guarantees Limited (BLG), the only independent broker in the UK specialising in building guarantees.
The two firms say that the launch of the Homebuyers Structural Guarantee fills a gap in the residential property market by protecting homeowners from the high cost of repairing otherwise uninsurable structural defects.
Paul Oxley, director of the Property Guarantee Company Limited, says: “We have long held the view that the UK housing market needs to offer wider protection to purchasers of existing houses. After a great deal of effort I am pleased to say that we now have a genuine market first with the Homebuyers Structural Guarantee.
“We have worked closely with BLG to deliver something new and innovative. This guarantee will be a major benefit to anyone involved with the housing market and we look forward to it becoming a market standard for the sale of existing houses.”
BLG director James Russell added: “A guarantee of this nature is much needed by home buyers. For estate agents and sellers, it could make their property stand out from the rest. It should be a key point for intermediaries and solicitors acting for potential purchasers, knowing that protection is in place for their client – and clearly mortgage lenders want to see that level of guarantee too.
“In our view, the application of the Homebuyers Structural Guarantee could mean the difference between a property transaction successfully completing or not. Put simply, the housing market needs it.”
