Mortgages on flats - is the EWS1 situation as bad as some are saying?

Durban

Deleted_User said:

Durban said:

I have owned a one bedroom purpose built flat as a BTL for 7 years.

This is within a small block of 12 flats, 2 storey's and no cladding.  The block was built in 1985

The fixed rate has just expired and I have had no problems moving onto a better , 5 year fix with the same lender , Accord.

They didn't ask for the EWS1 and I was eligible for all their retention deals , didn't have to go onto their variable.

I am worried about this news.  However , I do not expect to sell for another 5 years so hopefully it will be sorted by then

Staying with the same lender requires zero underwriting so they wouldn't check anything.  They can't get rid of you since you are there already. 

I guarantee that you will have been refused the mortgage if you went as a new customer to accord

Thank you. 
To be honest , I hadn’t given any of this much attention as the building doesn’t have cladding and isn’t only 2 floors. I know different now , thanks to this thread. 

I’m glad that my lender didn’t make me go onto the variable rate. 

How long , realistically, are we expecting this to be sorted out? 

I’m guessing flats that are built today are fine. 
How old are the blocks that’s need the EWS1? 

firsttimesellerldn

annetheman said:

In short, unfortunately I can pretty much guarantee your buyer's lender will want an EWS1. It doesn't matter that there is no cladding, or that it is under 18m, all banks are asking for it since Advice Note 14 came out in January and are asking for it for any and every purpose built flat.

Your buyer may be lucky and their lender's valuer may say that an intrusive survey isn't required, then your freeholder is looking at a cost of £1.5-3K. Mine was a non-intrusive at £1.7K and will not be charged to the leaseholders (I'm buying, don't live there yet).

If the valuer insists it must be intrusive then it'll be £10,000s... You might have a fight on your hands asking the freeholder to commission one if they feel they don't need to - some refuse because the building is under 18m therefore no legal requirement.

I wouldn't believe the developers. Many stories out there about developers using materials not in the approved plan. I'm very active in the cladding community on Twitter and I don't know anyone in any purpose built flat who can report a sale in their block this year without EWS1.

Also, your buyer would be ill advised to buy without one because they could have serious problems when they want to remortgage in future - basically end up where you are, sadly, should no govt intervention happen to clear up this mess.

I hope for you it is also not intrusive.

P.s. It isn't just about the brick exterior or the insulation but also the fire breaks, inner cavity, how they are constructed and work together etc. The same materials put together in a one way in a building will form a different wall "system" than if put together differently in another, which means one might spread fire like a tinderbox and the other might not spread at all.

Government basically slapped AN14 together to mean all buildings are either "safe" or "dangerous" and there's a lot more to it... Crickets when thousands of people ask them to fix this mess. However, it is gaining media traction, I see light at the end of the tunnel.

Good luck, welcome to EWS1 nightmare...

Just to update - the surveyor for my buyer's lender (Nationwide) came to do the valuation on my flat today and commented "definitely no problem with the cladding on your flat then" as it's brick. He didn't think that an EWS1 form would be asked for. I am very much hoping he's right, although the fact lenders and perhaps surveyors as well are seemingly being so inconsistent is clearly hugely problematic for flat owners - why should we be so uncertain about whether we can sell or not?! And that's without even getting into the fact many buildings have not been built properly and are unsafe. In all honesty I would not be buying a flat in a purpose built block at the moment given the uncertainty and risks of not being able to sell and potentially also getting hit with huge bills for remediation. 

annetheman

firsttimesellerldn said:

annetheman said:

In short, unfortunately I can pretty much guarantee your buyer's lender will want an EWS1. It doesn't matter that there is no cladding, or that it is under 18m, all banks are asking for it since Advice Note 14 came out in January and are asking for it for any and every purpose built flat.

Your buyer may be lucky and their lender's valuer may say that an intrusive survey isn't required, then your freeholder is looking at a cost of £1.5-3K. Mine was a non-intrusive at £1.7K and will not be charged to the leaseholders (I'm buying, don't live there yet).

If the valuer insists it must be intrusive then it'll be £10,000s... You might have a fight on your hands asking the freeholder to commission one if they feel they don't need to - some refuse because the building is under 18m therefore no legal requirement.

I wouldn't believe the developers. Many stories out there about developers using materials not in the approved plan. I'm very active in the cladding community on Twitter and I don't know anyone in any purpose built flat who can report a sale in their block this year without EWS1.

Also, your buyer would be ill advised to buy without one because they could have serious problems when they want to remortgage in future - basically end up where you are, sadly, should no govt intervention happen to clear up this mess.

I hope for you it is also not intrusive.

P.s. It isn't just about the brick exterior or the insulation but also the fire breaks, inner cavity, how they are constructed and work together etc. The same materials put together in a one way in a building will form a different wall "system" than if put together differently in another, which means one might spread fire like a tinderbox and the other might not spread at all.

Government basically slapped AN14 together to mean all buildings are either "safe" or "dangerous" and there's a lot more to it... Crickets when thousands of people ask them to fix this mess. However, it is gaining media traction, I see light at the end of the tunnel.

Good luck, welcome to EWS1 nightmare...

Just to update - the surveyor for my buyer's lender (Nationwide) came to do the valuation on my flat today and commented "definitely no problem with the cladding on your flat then" as it's brick. He didn't think that an EWS1 form would be asked for. I am very much hoping he's right, although the fact lenders and perhaps surveyors as well are seemingly being so inconsistent is clearly hugely problematic for flat owners - why should we be so uncertain about whether we can sell or not?! And that's without even getting into the fact many buildings have not been built properly and are unsafe. In all honesty I would not be buying a flat in a purpose built block at the moment given the uncertainty and risks of not being able to sell and potentially also getting hit with huge bills for remediation. 

That's good news, they can probably do sign off with a non-intrusive. If I were the buyer though I would want to have it done EWS1 signed off before I buy, as it's a nightmare once you're in as you are well aware now. It is very unfair for leaseholders, some building owners acted quickly and have performed EWS1 surveys, like my prospective one; others have just dumped it on the leaseholders' problem to live with for X years and are off building new homes courtesy of Jenrick.

I personally wouldn't be buying a purpose built flat if I hadn't spent £60k on AST rent in another purpose built flat (1950s build, ex council now private rental) in the last few years.

I would just buy a freehold house but alas, that is simply out of reach for many in my generation, at least where the jobs are because I'm not moving to the Orkney islands to retrain as a fisherwoman.

I can only hope that the appointment of Stephen Greehalgh last week as the new Building Safety Minister will bring some much needed leasehold reform as that is as much entrenched in the cladding scandal as many other housing issues on the "bottom rung". Greenhalgh is the only minister who has engaged with residents thus far, sadly. Let's wait and see.

crazyoldmaurice

annetheman said:

crazyoldmaurice said:

annetheman said:

In short, unfortunately I can pretty much guarantee your buyer's lender will want an EWS1. It doesn't matter that there is no cladding, or that it is under 18m, all banks are asking for it since Advice Note 14 came out in January and are asking for it for any and every purpose built flat.

Your buyer may be lucky and their lender's valuer may say that an intrusive survey isn't required, then your freeholder is looking at a cost of £1.5-3K. Mine was a non-intrusive at £1.7K and will not be charged to the leaseholders (I'm buying, don't live there yet).

If the valuer insists it must be intrusive then it'll be £10,000s... You might have a fight on your hands asking the freeholder to commission one if they feel they don't need to - some refuse because the building is under 18m therefore no legal requirement.

I wouldn't believe the developers. Many stories out there about developers using materials not in the approved plan. I'm very active in the cladding community on Twitter and I don't know anyone in any purpose built flat who can report a sale in their block this year without EWS1.

Also, your buyer would be ill advised to buy without one because they could have serious problems when they want to remortgage in future - basically end up where you are, sadly, should no govt intervention happen to clear up this mess.

I hope for you it is also not intrusive.

P.s. It isn't just about the brick exterior or the insulation but also the fire breaks, inner cavity, how they are constructed and work together etc. The same materials put together in a one way in a building will form a different wall "system" than if put together differently in another, which means one might spread fire like a tinderbox and the other might not spread at all.

Government basically slapped AN14 together to mean all buildings are either "safe" or "dangerous" and there's a lot more to it... Crickets when thousands of people ask them to fix this mess. However, it is gaining media traction, I see light at the end of the tunnel.

Good luck, welcome to EWS1 nightmare...

A one bed flat in my 5 story no cladding SO block has "very recently" had its valuation and had lending secured without mentioning the ews1 according to my HA. I emailed them at the start of this week when I learnt about the ews1 and I knew another one bed went up for sale not long after ours so i asked them directly.

Waiting for a survey to be arranged for our flat at the moment so will keep you posted!

I'd be really interested to know the lender, do you know?

Whoever bought it is going to have a hell of a time when it's remortgaging time with no EWS1. Not advised at all.

I couldn't find out the lender for the other flat, but we finally had our valuation survey done a week ago with connells. Found out yesterday our buyer has had her mortgage offer through from Kent Reliance! 

My building was built 2005, 6 floors 17.25m high with metal, brick and concrete balconies and no cladding. Pretty ugly building but pretty grateful for that right now. I read from someone else yesterday they've had their buyer with an offer from Kent reliance too.