Professional Consultants Certificates
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IPB ASSOCIATES’ ‘PROFESSIONAL CONSULTANT CERTIFICATE’ SERVICES
IPB Associates provides certification services for new-build dwellings. We are qualified to supervise work and issue the necessary Professional Consultant Certificates (PCC) to enable lenders to release funds at specific stages of the project. The certificate issued is in the format of the 'Council of Mortgage Lenders Professional Consultants Certificate' and is valid for six years from date of issue and is transferable to any future purchasers of the dwelling.
Developers or professional builders need this type of certificate if:
• They’re selling the property and your purchaser needs a mortgage
• They want to rent the property and raise a Buy-to-Let mortgage to release equity
What is the Professional Consultant Certificate?
What was once generally known as an Architect’s Certificate for newly built or converted property is now known as The Council of Mortgage Lenders (CML) Professional Consultants Certificate (PCC). 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 CML Professional Consultant Certificate. Lenders indicate if they will accept the PCC in their Part 2 responses to 6.7.4 of the Lenders' Handbook. The Lenders' Handbook provides comprehensive instructions for conveyances acting on behalf of lenders in residential conveyance transactions. This form of the certificate has been pre-approved by the CML and they will only accept the PCC for financial transactions which can only be signed off by a properly insured Professional Consultant.
The PCC is for use by professional consultants when designing and/or monitoring the construction or conversion of residential buildings. By signing the certificate the consultant confirms that he has monitored the construction of the property and that he will remain liable to the owner and any lenders for six years. The PCC may not be appropriate for all developments; particularly large scale mixed commercial/residential developments.
Definition of ‘Warranty’
The word ‘warranty’ is used in the sense that a professional consultant undertakes to the financial lender that the property is secure from a structural viewpoint and complies with building regulations. This should not be mistaken for any form of Latent Defects Insurance. A Professional Consultants Certificate is only a warranty in the sense that the issuing professional undertakes (by means of a signed CML certificate) that the subject property is built in accordance with the approved plans, complies with building regulations and is to a good standard. This undertaking is primarily for the use of banks and building societies as a security for a loan. The lender is provided with an assurance of the standard of construction, which is backed by the issuing architect's professional indemnity insurance. THIS IS NOT A LATENT DEFECTS POLICY. The NHBC provide an insurance backed guarantee and should intervene to provide a remedy to a problem, although some are excluded in their 'small print'. In all cases the builder is liable for the first two years following practical completion.
The larger guarantee providers, such as the NHBC, are not always the best choice for the smaller house builder, developer or self-builder since:
1. They will not step in if you have already commenced on site
2. They act on behalf of their scheme member i.e. the contractor
3. They will require a bond payment from unregistered builders
4. All fees have to be paid up front whether the guarantee is issued or not
5. Often their inspectors are not chartered professionals
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.
For further information on the PCC please see the dedicated page at www.cml.org.uk/cml/handbook/certificates
What you can expect to receive from our services:
• Checking of plans and technical details of the project *
• Site visits at various stages of construction
• Issuing stage payment certificates, if required
• Issuing interim reports and advice
• Issuing a pre-completion report
• Offering expert advice throughout
*If the applicant does not have any plans or technical details we can also organise these.
Upon commencement we will request a copy of the following:
• The plans and technical details of the project
• A copy of the planning approval document
• A copy of the building notice/building regulations full plans application
• Confirmation of your intended start date
Inspection stages
• Foundations - Excavations
• Ground floor - Hardcore ready to receive insulation / DPC
• First floor - joists including any steelwork within the floor zone (if applicable)
• Roof structure - complete prior to felt and battening
• Pre-plaster
• Completion
Each inspection will be carried out to confirm that the works are preceding in accordance with the contract drawings, in accordance with the building regulations and to a reasonable standard of workmanship.
We will issue the Professional Consultant's Certificate providing that all of the work is carried out to a satisfactory standard, a copy of the building regulations completion certificate has been received and our professional fees are paid in full.
Professional fees:
Between £1800.00 - £2000.00 + VAT per dwelling.