Shaz looks at structural warranties and explains why you should be sorting this out at the start of a build if you want to get the best price.
Any structural warranty is about protecting against things that can be very costly and if you are looking to finance at the end of the build a lender will usually ask for one, so hear about the right way to source a warranty for the best price in this episode.
KEY TAKEAWAYS
When you look for funding the lender will ask for a warranty and it’s much more costly to get a warranty at the end of a build
Sourcing a warranty at the end of a build can double the cost because not all work is visible so the risk is seen as higher
Structural warranties are completed on new builds and commercial conversion properties and cover structural defects
They cover up to ten years and you can be required to give a personal guarantee for the first two years
Use a broker to source the best deal for you
When the work is reviewed at the start the premium will be lower
They aren’t compulsory but lenders do usually ask for a warranty
Most warranties don’t cover the details such as creaky floors
Usually, any issues appear early on and a warranty protects against things that can be very costly
BEST MOMENTS
‘Lots of people new to property development don’t know about structural warranties’
‘Structural warranties don’t cover the details’
VALUABLE RESOURCES
shaz@aaa-accountants.co.uk
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
Facebook
YouTube.
