Ews1 form ?

katie91_2

If you search #ews1 on Twitter you’ll see just how much of a scandal this is and how many people it’s affecting. Currently, no bank will lend on a multi storey building without an EWS1 regardless of whether it’s under 18m and does or doesn’t have cladding. We are currently trying to sell a flat in an entirely brick building under 18m, luckily our tests were done 3 weeks ago and our EWS1 is due in 5 weeks. We are fortunate - many management companies are refusing to have the checks done, particularly for those buildings under 18m or saying it could take years to carry out the checks. The government needs to do something about it, and quickly. There are thousands of people sat in zero valued properties who want to move on, particularly with the stamp duty cut in place, who are completely and utterly trapped.

annetheman

I can assure you every lender seems to be requesting the EWS1 form for every building made of any material, balconies, no balconies, cladding no cladding, two stories, fifty stories. It isn't the solicitor being funny. My mortgage advisor said I was the first case he heard of needing it for a non-cladded <18m building and now every one of his clients in flats have had different lenders ask for it - I also suggest searching for EWS1 (or #claddingscandal) on Twitter to see the extent of the problem.

All because of Advice Note 14 which was published by the MHCLG on January. They really didn't think it through at all.

It is a painful process, but if anything, your buyer should be happy if your Housing Association/freeholder can sort a signed form before they buy, because they will otherwise find themselves needing to go through this when they try to re-mortgage within the next 5 years. Not to mention the cost...

NameUnavailable

I'm genuinely confused by this because as someone looking to buy (probably a flat) I'm seeing places sell that I'm watching on Rightmove and they can't all be cash buyers.

Are SOME places OK or are lenders asking for EWS1 forms for any kind of flat (i.e. even if only ground and first floor or maisonettes?).

Any experience of what or what isn't safe to buy from this perspective? Surely new homes developers would be lobbying the Govt. if they can't sell any of their new flats?

annetheman

NameUnavailable said:

I'm genuinely confused by this because as someone looking to buy (probably a flat) I'm seeing places sell that I'm watching on Rightmove and they can't all be cash buyers.

Are SOME places OK or are lenders asking for EWS1 forms for any kind of flat (i.e. even if only ground and first floor or maisonettes?).

Any experience of what or what isn't safe to buy from this perspective? Surely new homes developers would be lobbying the Govt. if they can't sell any of their new flats?

-Mine is also 'Sold STC' on Rightmove - doesn't mean completed sadly

-I think it depends entirely on the lender but you will be very hard pressed to find one not asking for any height purpose-built flat. Blocks, I mean. An MP highlighted a case where there were 4 flats in a 2-storey block... [sorry no source]

-It isn't about what's "safe" to buy although obviously avoid anything over 18m and anything with cladding but lenders' valuers seem to be requesting it for any and everything; it all depends on the valuer the lender appoints (and most seem to be hiding behind this EWS1 form regardless of applicability)

-New flat developers just had Christmas delivered to them by Jenrick through Planning Reform, I doubt they will care until they can't sell anymore flats directly - which is unlikely to happen soon as they tend to sell flats via third parties. I.e. the building owner is very rarely the developer, the building owner (freeholder) will be a housing association or management agency etc.

E.g. I'm buying new build, the property is already owned by a third party, being sold by an agent. 

The FREEHOLDER/building owner is responsible for EWS1 and remediation but these costs are currently being forced onto leaseholders, so they don't really care. If they aren't legally required to produce very very expensive EWS1 form, they know the leaseholder is trapped, continues to pay their ground rent and increasing service charges, can't move and can't force them to do anything.

Leasehold system is abhorrent tbh.