What is a CML Certificate?
When you purchase a newly built or converted property, any lenders you apply for a mortgage with will expect you to have some kind of certification to validate the quality and safety of the building.
For example, most lenders will require applicants to have a Structural Warranty or a Professional Consultants’ Certificate (PCC), formerly known as a Council of Mortgage Lenders (CML) Certificate.
Sometimes still known as a CML Certificate or even an Architects’ Certificate, a PCC is a document from a warranty provider that confirms the property in question has been built as specified in the original plans and to regulatory standards.
Many smaller builders favour the latest version of the CML Certificate over more comprehensive warranties because this option is often cheaper – but is it suitable for the coverage you need?
Here is a quick guide to the CML Certificate – now called a PCC – to help you decide whether your project requires one.
What does a CML Certificate cover?
A CML Certificate is typically a single-page document signed by a professional construction consultant. This certifies that they supervised key stages of the build and can confirm that it was completed to a satisfactory standard, complying with Building Regulations and approved plans.
By signing off on the building, the consultant also agrees to maintain a required level of professional indemnity insurance for the duration of the certificate, and that they will be liable to the purchasers and their lender throughout this period – which is usually 6 years from the date of certification.
It’s important to note that a CML Certificate or PCC is not the same as a Structural Warranty or Latent Defects Insurance. A PCC is primarily assurance for the mortgage lender in the absence of any other warranty or insurance policy, allowing them to release the funds for you to buy the building.
This means that a CML Certificate won’t automatically cover repair costs for building defects that you may discover later – you can only use the document to claim against the consultant for negligence.
You would therefore need to prove that the statements made and signed by the consultant were not accurate in order to claim compensation. This can be a lengthy and complex legal process, and relies on the consultant having the required professional indemnity insurance to cover the repairs.
Small construction companies and self-builders, who are not registered with a scheme that mandates new build warranties, may be more willing to take this risk for the lower cost of a CML Certificate.
Who can provide a CML Certificate?
As their name suggests, these certificates must be issued and signed by a professional consultant, such as a chartered architect, surveyor, or engineer. Their qualifications must be proven through registration with a professional organisation, and they must have professional indemnity insurance.
Along with several other financial bodies, the Council of Mortgage Lenders (CML) was absorbed by UK Finance in 2017, consequently replacing the CML Handbook to supply updated guidance on approved organisations and providers.
While the term ‘CML Certificate’ is outdated now, providers approved by UK Finance are still offering Professional Consultants’ Certificates that are accepted by most UK banks or building societies.
However, not all lenders accept PCCs from all providers, so it’s important to check which PCC providers your chosen mortgage lender will accept certificates from.
Companies such as Architects Certificate, provide 6 Year Professional Consultants’ Certificates that are accepted by most major banks and lenders in the UK. Click here to view the list of banks and building societies that currently accept their certificates.
How to get a CML Certificate
CML certificates and warranties are available to self-builders, small companies, and larger developers alike.
Alternatively, if you want to discuss CML Certificates in greater detail, tailored to the specifics of your project, you’ll want to reach out to a professional.
