A structural warranty — also called a latent defects insurance policy or a new home warranty — provides protection for the owner of a newly built or converted property against structural defects that emerge in the years after completion. Most mortgage lenders require a structural warranty for new builds and certain conversions. Understanding what warranties are available, what they cover, and when you need them is essential for anyone embarking on a new build, self-build, conversion, or major structural project. Crown Architecture & Structural Engineering advises clients on warranty requirements across the UK. Call 07443804841 for guidance.
What Is a Structural Warranty?
A structural warranty is an insurance-backed guarantee that the structure of a newly built or converted property will be free from major structural defects for a defined period — typically 10 years. If a covered structural defect emerges within that period, the warranty insurer funds the remediation works.
Structural warranties are distinct from:
- Builders’ guarantees: Contractual promises from the contractor, which are only as good as the contractor’s solvency. If the builder goes bust, the guarantee is worthless.
- Buildings insurance: Covers damage from specific events (fire, flood, theft). Does not cover latent construction defects.
- Professional indemnity insurance: Covers claims against architects, engineers, and other professionals for their own errors and omissions. Does not directly cover the building owner.
A structural warranty is assigned to the building, not the buyer — when the property is sold, the remaining warranty period transfers to the new owner. This is why lenders value them: they protect the security on any mortgage on the property for the duration of the warranty.
When Is a Structural Warranty Required?
Most mainstream mortgage lenders require a structural warranty for:
- New build homes (houses and flats) completed within the last 10 years
- Self-build homes (where the owner is acting as their own developer)
- Converted properties (barn conversions, commercial-to-residential conversions) completed within the last 10 years
- Major structural extensions or renovations in some cases
The Council of Mortgage Lenders (now UK Finance) Handbook lists accepted warranty providers. If a warranty is from a provider not on the accepted list, most lenders will not lend on the property.
NHBC Buildmark
The National House Building Council (NHBC) Buildmark warranty is the most widely recognised structural warranty in the UK. It is used primarily by volume housebuilders (Barratt, Taylor Wimpey, Persimmon, etc.) and covers new homes for 10 years from the date of legal completion:
- Years 1–2 (builder’s period): The builder must repair defects arising from failure to meet NHBC’s Technical Standards — essentially a snagging and defect remediation obligation on the builder.
- Years 3–10 (NHBC insurance period): NHBC’s insurance covers major structural defects — damage to or failure of the load-bearing structure, external rendering and cladding, external joinery (windows, doors) in specific circumstances.
Buildmark is only available for homes built by NHBC-registered builders. It is not available for self-builds where the homeowner acts as their own developer and contractor.
Self-Build Warranties
For self-builds, a number of specialist warranty providers offer structural warranties that are accepted by most mortgage lenders:
- Build-Zone (formerly Self-Build Zone): Popular for self-build and renovation projects
- Premier Guarantee: Covers self-builds, new builds, and conversions
- LABC (Local Authority Building Control) Warranty: Backed by local authority building inspectors
- PROTEK: Specialist warranty for self-builds, renovations, and conversions
- CRL (Construction Risk Management Ltd): Covers new builds, conversions, and renovations
- Advantage HCI: Accepted by many lenders for self-builds and conversions
Self-build warranties are arranged before or early in the construction programme and typically involve inspections of the work by the warranty provider’s inspector at defined stages (foundations, superstructure, roof, completion). The insurer satisfies themselves that the build is proceeding to acceptable standards before issuing the warranty at completion.
Barn Conversion and Change of Use Warranties
Class Q barn conversions and other change-of-use conversions to residential use (office to residential, commercial to residential) are treated similarly to self-builds for warranty purposes. Most specialist warranty providers will cover these, subject to their assessment of the structural adequacy of the conversion.
Given the structural complexity of many barn conversions (retaining existing agricultural structures, new foundations, significant insulation and airtightness works), having a structural engineer involved in the design and specification is important both for Building Regulations compliance and for satisfying the warranty insurer’s technical requirements.
Architect-Designed New Homes: Professional Consultants Certificate (PCC)
For some self-builds or architect-led new builds, an alternative to a warranty is a Professional Consultants Certificate (PCC) — also called an architect’s certificate or professional indemnity certificate. A PCC is signed by a qualified professional (architect or structural engineer with professional indemnity insurance) certifying that the building has been designed and supervised to a satisfactory standard and is free from major structural defects at the time of completion.
PCCs are accepted by some lenders as an alternative to a structural warranty, but not all. Since the COVID-19 pandemic, lenders have become more cautious about PCCs, and the number accepting them has reduced. Always check with your lender whether a PCC is acceptable before relying on it instead of a warranty.
Costs of Structural Warranties (2025)
Structural warranty premiums are typically calculated as a percentage of the build cost:
- Self-build warranty (up to £500,000 build cost): Approximately 0.5–1.5% of build cost, i.e. £2,500–£7,500
- New build developer warranty (volume housebuilder via NHBC): Typically 0.4–0.8% of the sale price per unit, negotiated as part of the NHBC registration
- Barn conversion or commercial conversion warranty: Typically 1–2% of build cost, reflecting higher risk
Inspection fees (paid to the warranty provider’s inspector for stage inspections) are usually in addition to the premium — typically £500–£2,000 for a self-build, depending on the number of inspections required.
Does a House Extension Need a Structural Warranty?
Most structural warranties cover extensions to existing properties only if the extension is substantial (typically more than 50% addition to the original floor area) or if the lender specifically requires it. For a standard rear or loft extension, most lenders rely on Building Regulations Completion Certificate as confirmation of structural adequacy rather than requiring a full structural warranty.
However, for conversions (e.g. a garage conversion creating a new unit, or a basement conversion for a separate habitable space), a warranty may be required depending on the lender’s requirements and the nature of the conversion.
Frequently Asked Questions
What does a structural warranty NOT cover?
Structural warranties typically exclude: cosmetic defects (cracks in plaster, decoration); mechanical and electrical installations (boilers, electrical systems, lifts — covered by separate warranties); wear and tear; damage from failure to maintain; storm, flood, or fire damage (covered by buildings insurance); and works carried out after completion without the warranty provider’s consent.
Can I get a warranty for a property built before 2015?
Standard structural warranties are for new or recently converted buildings. For existing buildings, a retrospective structural warranty (sometimes called a retrospective building guarantee) is available from some providers — typically covering a building for a further 10 years from the date of the retrospective policy. These are more expensive and require a structural survey first.
What happens when my 10-year warranty expires?
After 10 years, the warranty lapses. You will rely on your buildings insurance for damage from specific events, and on the general law (contracts with contractors, professional negligence claims against designers) for any residual defects. Most structural issues with well-built buildings either manifest within the first 10 years or not at all — the 10-year period is statistically the period of highest risk for latent structural defects.
Do I need a warranty for a self-build if I am not selling or mortgaging?
No legal requirement — but if you ever want to sell or remortgage, you will need either a warranty or an acceptable alternative. Obtaining a warranty at build stage is far less expensive and simpler than trying to arrange a retrospective warranty years later.
Can Crown Architecture help me with a structural warranty application?
Yes — we work with warranty providers and can provide the structural drawings, calculations, and design information they require. We also carry out stage inspections on behalf of clients who are self-managing their build. Call 07443804841 for more information.
Crown Architecture & Structural Engineering provides structural design services for new builds, self-builds, and conversions, and works alongside structural warranty providers to ensure our clients’ projects meet the technical requirements for warranty approval. Call 07443804841 for guidance.