Would exterior cladding deter you from buying?

stevat

Hi all,

this is my first post here, apologies if there's a similar thread somewhere and I couldn't find it. If I missed something, happy to be pointed there and this to be closed.

We're looking to buy a a 3rd floor flat in a 5-storey building, where some parts of the top floors (4th/5th), plus an area above them main entrance are covered in cladding. Would this deter you from buying, in case the flat becomes unsellable in the future, or an unexpected bill lands to have the cladding removed? We've learned that the building's insurers have demanded weekly visual inspections of the cladding to continue proving cover, which the management company negotiated down to monthly. Who's to say that in the future insurance will not be declined altogether because of the cladding?

I'd appreciate any advice on this - what would you do in this case? Just asking to try to gauge how much potential buyers would be deterred by something like this. I know however that several sales have taken place in the last 3 or years, at normal market prices.

Many thanks,
Stefanos

cooltt

stevat said:

Hi all,

this is my first post here, apologies if there's a similar thread somewhere and I couldn't find it. If I missed something, happy to be pointed there and this to be closed.

We're looking to buy a a 3rd floor flat in a 5-storey building, where some parts of the top floors (4th/5th), plus an area above them main entrance are covered in cladding. Would this deter you from buying, in case the flat becomes unsellable in the future, or an unexpected bill lands to have the cladding removed? We've learned that the building's insurers have demanded weekly visual inspections of the cladding to continue proving cover, which the management company negotiated down to monthly. Who's to say that in the future insurance will not be declined altogether because of the cladding?

I'd appreciate any advice on this - what would you do in this case? Just asking to try to gauge how much potential buyers would be deterred by something like this. I know however that several sales have taken place in the last 3 or years, at normal market prices.

Many thanks,
Stefanos

I think most people are intelligent enough to know the media whipped up the whole "death trap cladding" issue into something it was not. It was an insult to the people who died in the London fire, using their deaths to sell papers.

I personally wouldn't worry about it's safety, what i would be concerned about is the insurance industries nervousness over the issue. Yes they may well refuse to insure these type of buildings in future whether they are proved safe or not.

davidmcn

More importantly (assuming you need a mortgage) is what is the attitude of your (or any future) lender? Also any other fire safety recommendations which might come out - wouldn't be too surprised if there's recommendations/requirements to retrofit sprinklers/alarms etc. All going to be costs for leaseholders ultimately.

broga020

I would avoid it entirely. It’ll be hard to get a mortgage on it and if you do buy it then you open yourself up to future costs of replacing it. At the minute it is largely falling on leaseholders to foot the bill, and those bills can be huge. 

steve866

I would not buy it based on what you have said about the insurers wanting to do visual inspections, sounds like there is a concern. 

AlexMac

I too would be cautious without specific assurances that the Freeholder has examined the cladding, determined that it is safe, and that it will never require replacement.

If it ever was to be replaced, it's  likely that would be at your cost.  

The insurer's requirement is worrying, too. 

More generally, if buying a flat, I'd be  looking at wider issues; who the freeholder is, service charges, what these cover, whether there are lifts (I assume they are) and how old these and other infrastructure like roofs and balconies are, what the management arrangements are, what control, if any, you have over management and maintenance..?

I have two ex local authority flats as BTLs, and the Council are terrific freeholders; low overheads, fair service and maintenance  charges; £700pa with the odd £4-5k bill every 7-10 years for major repairs.  But they are low rise, 4 storey blocks with  conventional 
Brick/tile roof construction and no lifts.

I wouldn't touch a tower block with a barge pole!

Adly812

What’s wrong with cladding. I own a coach house which is cladding and many of the new builds are on our estate have cladding. I’ve like here ten years and it’s lovely 

hazyjo

Adly812 said:

What’s wrong with cladding. I own a coach house which is cladding and many of the new builds are on our estate have cladding. I’ve like here ten years and it’s lovely 

Obviously things have changed since Grenfell.

Understandably, there are concerns, restrictions and regulations now re cladding.

artyclarty

My sister had 4 flat purchases fall through because of cladding issues. In each case her mortgage valuation came back as £0 due to cladding issues (generally no satisfactory paperwork from the management company in each case). One of them only had cladding on the top two floors of 5, but that was enough to not be able to get the mortgage. All of these properties, she was happy to take the risk on, post remediation.

After 2 years of searching she finally completed on a (substancially cheaper, thanks covid!) cladding free flat last week!

NameUnavailable

Adly812 said:

What’s wrong with cladding. I own a coach house which is cladding and many of the new builds are on our estate have cladding. I’ve like here ten years and it’s lovely 

Good luck when you try to sell. Or when your management company land you with a huge bill to replace it with 'safe' cladding......

The latest bill on lease reform currently being considered includes legislation to allow freeholders to make fire safety improvements to flats, as long as the total cost PER FLAT isn't more than £70K. Are you ready in case of that?

NameUnavailable

Yes, it would deter me.

Mortage co's are being very picky on any flats with cladding of any sort, and also flats with balconies. The necessary forms to prove they are safe are extremely hard to obtain and very expensive. Freeholders are under no obligation to provide them, so the properties are given a zero valuation for mortgage purposes, leaving owners stuck there or having to sell to cash buyers/via auction at whatever they can get.

Terrible situation and the Govt. really should step in to make the certification compulsory where necessary and enforce lenders to adhere to the rules on applicable properties.