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The Home Information Pack Regulations 2006
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Permitted limits for converted premises
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16.—(1) This paragraph applies to a property where the most recent use of the premises, is or was a primarily non-residential use, and it is due to be converted to a residential property by the time the sale is completed.
(2) The total amount of any payments, financial compensation or costs of remedial work arising under the new homes warranty may, in relation to the property be limited to—
(a)£250,000 plus the annual increment; or
(b)the value of the property at the time the sale of the property was completed plus the annual increment.
(3) Where the property forms part of a continuous structure, the total amount of any payments, financial compensation or remedial work arising under all related new homes warranties may be limited to £5,000,000 plus the annual increment in relation to all the premises which form part of the continuous structure.
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