Lenders will generally only lend on a newly built (or newly converted) property where the property is covered by a warranty scheme (for example, NHBC warranty) or the Professional Consultant’s Certificate (PCC) formly known as Architect Certificate. The PCC is for use by professional consultants when designing and/or monitoring the construction or conversion of residential buildings. The purpose of the PCC is to confirm to the lender (or its conveyancer) that a professional consultant:
- Has visited the property to check its progress of construction, its conformity with drawings approved under building regulations and its conformity with drawings/instructions issued under the building contract;
- Will remain liable to the first purchasers and their lender and subsequent purchasers and lenders for the period of 6 years from the date of the certificate;
- Has appropriate experience in the design and/or monitoring of the construction and conversion of residential buildings; and
- will keep a certain level of professional indemnity insurance in force to cover his liabilities under the certificate.
The CML Professional Consultant Certificate can only be signed by a consultant with one or more of the qualifications listed in section 6.6.4 of the Lenders’ Handbook, for example, Chartered Architectural Technologist of the Chartered Institute of Architectural Technologists (CIAT). By signing the certificate the consultant confirms that he has complied with the requirements of the certificate and that he will remain liable to the owner and any lenders for a minimum of six years.
You’ll need this type of certificate if:
- You’re selling the property and your purchaser needs a mortgage or re-mortgaging against the property
- You want to rent the property and raise a Buy-to-Let mortgage to release equity