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"Official" Thread for all of us waiting for a cladding report...

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"Official" Thread for all of us waiting for a cladding report...

edited 30 November -1 at 12:00AM in Mortgages & Endowments
206 replies 29.6K views
asm89asm89 Forumite
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edited 30 November -1 at 12:00AM in Mortgages & Endowments
Hi

There are many of us in this boat, either trying to buy, sell or remortgage a flat and have been hit with the "we need a cladding report before we can lend" from the lender.

I thought it'd be useful if we could all chat in one place, and so people can post updates on their situations in one place, to give others hope, advice and to help us maintain sanity during this period.

I'll start with my situation.

Purchasing a Shared Ownership new build flat in London off plan. It's due to be handed over to the Housing Association in a few weeks, this is already a delay of 6+ weeks from the original timescales

All was going well with my mortgage application, but then it got surveyed. The surveyor gave a valuation but the lender (virgin money) has asked for a cladding report.

VM initially gave a 2 week deadline to provide the report, this was then extended by a week. No real updates on this from the Sales Advisors, but they have been chasing the developers and HA for weeks now. So it looks like my mortgage app will get cancelled, and i'll have to reapply if and when this report gets produced.

I've been assured that a report will be produced, but when is the question! It's all quite baffling given the apartments are still in development, so one would hope this kind of report is part of their build-complete/initiation process especially as the cladding was put on this year! After the government guidelines.

The sales manager also told me that for another new build (which was already complete) sale, it took 3 months for the report to be produced!

What is strange is that 2 other people have had mortgage offers for their apartments without having to produce this report, one used the same surveyor as mine! But these were issued some weeks before my survey was done, so it looks like banks have changed their approach overnight. My only hope is that the lack of cladding report is now preventing further sales progressing, so hopefully this will put some fire under the HA.
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Replies

  • gazebogazebo Forumite
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    My FIL is currently stuck in this situation.

    Property is in Scotland, where the existence of building managers is not the same as the rest of the UK (feuhold rather than leasehold), although many do benefit from having a property factor (who is only there to help owners organise repairs, not really to manage the building as such)

    Unfortunately, when my FIL went to put his place on the market, the legislation changed that very week. So the surveyor has come back with a category 3 rating for the cladding. We already know, thanks to a sale in the build in March of this year that the cladding is not the same as that used in Grenfell (and have a letter from the council confirming this). However, due to the change in guidance to surveyors, an in depth cladding report is now required.

    I will keep you updated on developments from a Scottish perspective.

    It does seem at present like overnight, thousands of people have effectively been left with properties they are going to struggle to sell on and many will not have the benefit of discovering this until after they attempt to put it on the market.
  • haras_nosirrahharas_nosirrah Forumite
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    This is the biggest single issue we are coming up against at the moment.

    The problem is new rules came in which affects flats over 6 stories.

    Why new builds are being sold without having the reports in place is crazy because without the reports the properties are unmortgagble yet I don't think I have found one housing association who has done the reports

    It is incredibly frustrating
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mhuk01mhuk01 Forumite
    114 posts
    Part of the Furniture 10 Posts Combo Breaker
    I too am in a similar issue. Trying to remortgage an unencumbered flat, which has been deemed safe (although another block in the same development with different cladding is having to be replaced currently). I've submitted various reports but none have been accepted.

    I have received this from the lender: -

    “We require the Building Owner and/or its agent, as the 'responsible person' under the Regulatory Reform (Fire Safety) Order 2005, to produce a written statement to confirm that the cladding system(s) for the subject property meets the requirements of the current guidance from MHCLG. The statement must be prepared by a suitably qualified independent professional advisor who is a member of one of the professional bodies listed by the Ministry of Housing, Communities and Local Government (MHCLG) in Information Note 1 (or any subsequent list).”

    The statement should confirm the property meets the requirements of the current guidance from the Ministry of Housing, Communities and Local Government (MHCLG) and it must have been prepared and signed by a suitably qualified independent professional advisor."

    The lender is BM Solutions. Has anybody had similar issues and been successful with a lender?
  • haras_nosirrahharas_nosirrah Forumite
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    this is the report all the lenders want and none of them seem to be able to get.

    I know of a lender who will do it with a 40% deposit but the rates are high (they are the type of lender who will lend on the little pigs straw house with a 40% deposit)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mhuk01mhuk01 Forumite
    114 posts
    Part of the Furniture 10 Posts Combo Breaker
    this is the report all the lenders want and none of them seem to be able to get.

    I know of a lender who will do it with a 40% deposit but the rates are high (they are the type of lender who will lend on the little pigs straw house with a 40% deposit)

    My broker seems to think we should try Leeds Building Society - whether they will be any better, I guess I'll find out. It's particularly frustrating as the building as been surveyed and replacement cladding is not required.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • haras_nosirrahharas_nosirrah Forumite
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    I had a leeds one picked up for cladding which went straight through with skipton - the lenders are all completely hit and miss as it depends on the surveyor of the day.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • We are in the same situation as per post "cladding of a combustible nature".



    "Cladding of a combustible nature is thought to be present at the property you are purchasing. Therefore we require confirmation of the following: • The type of cladding/insulation used on the building • That a review of the building has been carried out by a suitably qualified independent expert in accordance with the decision tree in MHCLG Advice Note 14 dated 18/12/18. • The results of this review. Further information may be requested on receipt of this information and the property may still be deemed unsuitable for lending."

    At this point we are waiting for the review by a suitably qualified independent expert in accordance with the Advice Note, but still no clarity on timescale. I suspect the entire development is or will be faced with this issue, probably ~1000 flats?
  • asm89asm89 Forumite
    136 posts
    100 Posts First Anniversary
    terzinho86 wrote: »
    We are in the same situation as per post "cladding of a combustible nature".



    "Cladding of a combustible nature is thought to be present at the property you are purchasing. Therefore we require confirmation of the following: • The type of cladding/insulation used on the building • That a review of the building has been carried out by a suitably qualified independent expert in accordance with the decision tree in MHCLG Advice Note 14 dated 18/12/18. • The results of this review. Further information may be requested on receipt of this information and the property may still be deemed unsuitable for lending."

    At this point we are waiting for the review by a suitably qualified independent expert in accordance with the Advice Note, but still no clarity on timescale. I suspect the entire development is or will be faced with this issue, probably ~1000 flats?

    Oh good, they've agreed to do one in your building, that's progress
  • davidmcndavidmcn Forumite
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    gazebo wrote: »
    Property is in Scotland, where the existence of building managers is not the same as the rest of the UK (feuhold rather than leasehold), although many do benefit from having a property factor (who is only there to help owners organise repairs, not really to manage the building as such)
    In practice I would expect any buildings with questionable cladding to be sufficiently large and modern that the factors probably play a more proactive role in management, so I wouldn't have thought that to be a particular difference, other than the fact that they're acting on behalf of the flat owners collectively, rather than a third party freeholder.
  • gazebogazebo Forumite
    452 posts
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    I don't disagree davidmcn, however, it will often depend on who the Factor is. In this instance, they aren't known for being the most proactive and helpful.
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