Glossary definition
NHBC Warranty (Buildmark)
A 10-year structural warranty provided by the National House Building Council covering defects in newly built or converted residential properties. NHBC Buildmark is the most widely recognised warranty in the UK and is a standard requirement from mortgage lenders before they will lend to purchasers of new-build homes.
Definition
A 10-year structural warranty provided by the National House Building Council covering defects in newly built or converted residential properties. NHBC Buildmark is the most widely recognised warranty in the UK and is a standard requirement from mortgage lenders before they will lend to purchasers of new-build homes. Development finance lenders require evidence that an NHBC (or equivalent) warranty provider has been engaged from the outset, as the inability to provide a warranty at practical completion can prevent unit sales and delay the developer's exit.
See also
Closely related terms.
Practical Completion
The stage at which a building project is deemed complete and fit for its intended purpose, even though minor snagging items may remain.
Defects Liability Period
A contractual period, typically 6 to 12 months after practical completion, during which the building contractor is obliged to return to site and rectify any defects that emerge at no additional cost to the client.
Building Regulations
The statutory standards that all building work in England and Wales must comply with, covering structural integrity, fire safety, energy efficiency, drainage, and accessibility.
Monitoring Surveyor
An independent surveyor appointed by the lender to inspect the development site at regular intervals and verify that construction work has been completed to the required standard before each drawdown is released.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
Development Finance Application Checklist: Documents You Need
A comprehensive checklist covering every document lenders require for a development finance application, from development appraisals to contractor tenders and planning evidence.
11 min read readRead
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