Cladding issue with a flat in a block of flats

Khaled_Giasin

Hi All,

I amd a first time buyer and found a beautiful flat in a 14 storey block of aparatments. nice view, spacious everything is great in it and it is being sold with a reduced price (now offered at £175K) because it had the cladding issue. The old cladding was all replaced two years ago with new and approved cladding which costs of £35K to £50K.

The problem is the costs of the cladding replacement is in dispute between the developer/leasehold owner and the flat owners. So worst case scenario is that either the flat owners or the developer/leasehold!owner will have to pay this 35-50 thousand pounds costs for cladding replacement. The flat prices in that area are around £230K so it seems they are kind of accounting for the cladding repalcement costs in case it is charged to the flat owners.

My questions is would it be easy to get a mortgage and later remortgage the loan for such a flat!or is it going to be a big headache and better to avoid all the situation. The price can be even reduced if a good offer is made to the seller.

any advice will be highly appreciated.

Best Regards

eddddy

Khaled_Giasin wrote: »

My questions is would it be easy to get a mortgage and later remortgage the loan for such a flat!or is it going to be a big headache and better to avoid all the situation.

A mortgage lender would want documentation / evidence to show that the cladding is safe - which presumably exists.

However, mortgage lenders don't tend to like 14 storey blocks. Is it ex-local authority? If so, that's likely to be an even bigger problem.


As a starting point, ask the EA if flats in that block are mortgageable. Then maybe ask some mortgage brokers. Perhaps mortgage brokers in that area will be familiar with that block (and/or similar ones) and have experience of getting mortgages on them.

davidmcn

As above, I would be checking whether that flat with its current cladding is mortgageable in the first place (see relevant threads on the mortgages board), before you start worrying about how to deal with the potential costs.

bouicca21

Not too far from me is a converted office block covered in dodgy cladding. Local press coverage suggests there has been no progress in rectifying the cladding because there is no way to compel the freeholder to do so.

OP, try googling the name of your block and see what comes up. I wouldn’t walk away, I’d run.

sal_III

Provided you can get a mortgage for that particular flat at all, do you have £50k laying around so if/when the bill for the new cladding arrives you can afford it?

Personally I wouldn't touch this with a barge pole, too much of a gamble.