Arnold Design
16 Shenfield Gardens
Rise Park
Nottingham
NG5 5BH

Arnold Design Associates

Architectural Certification for new homes

Persons acting as Building Contractors in “self build” projects, also Building Contractors who are not members of NHBC, Zurich or similar organisations, can experience problems with funding building works, and finding purchasers for the finished building on completion, or on disposal years later, if an NHBC or similar warranty does not exist.
The Council of Mortgage Lenders (CMC) require Solicitors and Licensed Conveyancers to ensure that any dwelling built, or converted, or to be occupied for the first time less than 10 years from completion, was built, or converted, under a New Home Warranty scheme acceptable to them, and has the benefit of warranty cover in place.

Where the property does not have the benefit of such a scheme, and has been built, or converted, within the last 6 years, the Solicitor or Conveyancer must check that the CMC and Loan Provider will proceed, and if so, the Solicitor or Conveyancer must satisfy themselves that the building work is being monitored (or if complete was monitored) by a Professional Consultant, who is able to provide specific Certification that he has appropriate experience, is professionally qualified in a manner acceptable to the CMC, and has Professional Indemnity Insurance in force for the greater of either:-

The value of the property once completed; or £250,000 if employed directly by the borrower; or in any other case £500,000 on an each and every claim basis.

Where the Professional Consultant is an Architect, registered with the Architects Registration Board, the monitoring and certification process is known as Architectural Certification.

Architectural Certification is not a New Home Warranty in the same form as those provided by NHBC Solo or Zurich Self Build, etc., but is an alternative method of satisfying a Lender that the building work was regularly inspected by a suitably qualified person at appropriate intervals during construction, is properly built in accordance with relevant approvals, standards and requirements, and provides secure equity for loan purposes.

Purpose of the Professional Indemnity Insurance element is to insure the Lender against the financial consequences of professional negligence by the Professional Consultant whilst carrying out his duties of monitoring and certification.
It is not intended as a warranty or guarantee of building workmanship or materials and standards of finish, although these will be monitored and reported on at agreed regular intervals.