The developer instructed J3 Advisory to secure a building warranty with deposit protection for its latest £16m GDV apartment project in Surrey.

Johnny Leadsom, director at J3 Advisory, sourced and placed the building warranty insurance on the full reinstatement value of the project — the policy is aimed at ensuring comprehensive coverage for any potential structural issues.

In addition to the warranty, Johnny was able to secure deposit protection for the project, allowing Nomad to optimise cash flow, said J3.

Although not essential, according to J3, this approach allows a reduction of developer reliance on interest bearing loans, offering greater financial flexibility while utilising and simultaneously protecting off-plan deposits.

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"Securing deposit protection can be a game-changer for developers," said Johnny Leadsom.

 "Without it, developers often have to resort to uncomfortable levels of leverage, at high interest rates to cover project costs.

Johnny continued, “Moreover, there's considerable noise in the market about deposit protection, and our primary concern there is often centred around the capacity that sits behind it and the claims process in the event it’s called upon.

Jack Simpson, founder and CEO at Nomad Developments, added: “When undertaking our latest project, we recognised the importance of adding an additional layer of projection for our off-plan purchasers.

“Johnny’s solution, underpinned by A-rated capacity, provided the peace of mind our buyers and their solicitors were looking for.”