Mortgage for flat with grenfell cladding?

nmhr52

Hi all

New here so excuse my limited knowledge.

I'm looking to put in an offer on a new build 5th floor flat (the block is 10 floors). Only issue is they've recently discovered the building has the same cladding as the one used in grenfell - and the developers are in a legal battle to recover the costs. So it probably wont be replaced for quite a while - 1+ years and leaseholders may be partially liable for costs. Thinking long-term, if i wanted to rent out how would prospects be?

I've called my bank to ask how whether they will lend and they said it would be up to the surveyor.

What is the likelihood of being able to obtain a mortgage on this?

davidmcn

First things first - you have already checked that the bank is happy in principle with lending on high-rise blocks?

Lunchbox

We’re in a 10 storey block (in London, and private, not ex-council), which has cladding but confirmed as not the same as Grenfell and not considered a risk. We’ve found our pool of lenders extremely restricted at remortgage, to the point where we had a choice of 2 without extortionate rates. I would be extremely surprised if any lender agreed a mortgage on a high rise with the composite cladding without a firm agreement to it being removed.

I’d also check the buildings insurance - this will be required by lenders, and again I can’t picture an insurer agreeing to insure such a building without a huge premium (which should form part of your service charge. Check that they have an actual quote and that it isn’t an estimate).

I would also expect contents insurance premiums to be pretty high - try getting a few quotes to check?

thelem

Assuming you're buying from the developer (as you say it's new build), surely it's up to them to sort this sort of thing before your purchase? I'd be very wary of buying a flat with a known problem like this. Will you be able to rent it if it isn't fire safe?

If it's just an investment anyway, then why not find another flat without those issues? Is there a big discount on the purchase price?

clift2000

Hello there - I'm a BBC journalist interested in your view on this issue. Can you drop me a line on helen.clifton@bbc.co.uk when you get this message? Thanks! Helen

davidmcn

clift2000 wrote: »

Hello there - I'm a BBC journalist interested in your view on this issue. Can you drop me a line on [EMAIL="helen.clifton@bbc.co.uk"]helen.clifton@bbc.co.uk[/EMAIL] when you get this message? Thanks! Helen

The OP is unlikely to get it at all given they haven't logged in here since January 2018, and anyway you're breaking the forum rules:

I'm a journalist, I posted asking people to get in touch, but my post's gone. Why?

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