Update on EWS1 for flats under 18mtres

Shoppadolley

Hi all,
Having read a few horror stories, I was just wondering if anyone had any updates on this process?
RICS have on their website that they are only needed if the surveyor requests one, but the mortgage brokers of the buyers of my flat have already asked for this. Is this likely to cause us issues? We have only 3 floors, brick outer and no balconies.

Thanks
Lisa 

firsttimesellerldn

I’m currently selling a flat in a five storey block with a brick outer and no other cladding or balconies. My buyer has received a mortgage offer - the lender did not ask for an EWS1. Other sales in my block seem to be progressing too.

annetheman

I'm a buyer of a new build complete late '19, sprinklers, centralised fire alarm, no cladding, brick exterior, under 18m and balconies (cited as reason for EWS1 request by lender's valuer). Your buyer could try another lender, who might not ask for it.

Personally, I wouldn't go that route (as a buyer) - because it just means obtaining an EWS1 becomes their problem further down the line. EWS1 is valid for 5 years; if the buyer finds in 2 or 3 years at the end of their fixed term that their lender is now requiring EWS1 to remortgage, they will have to contribute to the cost of it, which I'm sure you know is tens of thousands of pounds if an intrusive survey is requested. Also, having an EWS1 survey performed will let them know if they may be liable for expensive remediation work if the lender does give the mortgage.

EWS1 has resulted in months of delay for my purchase but at least I will know the rating it receives (e.g. B1 or A3 would mean there is a large possibility I may need to contribute to remediation work, in which case I will not buy - obviously won't buy a B2) and have it for 5 years - not paid for by me - when I need to remortgage in 2 years. 

We can only hope that by the end of the 5 years this process has been ironed out and its demand from lenders for any type of flat isn't grinding the market to a halt anymore.

Berry4

Hi,

I've been trying to staircase for the last 9 months (my building is <18m tall, has no cladding, but does have balconies) and need for an EWS1 form is why I've been unable to proceed. My housing association refuses to get a form because they think that having a building <18m tall means they're exempt, even though clause B suggests otherwise. My mortgage broker has said that the EWS1 guidance is currently under review and will be changing come spring. He thinks for buildings <18m tall it will be stated that an EWS1 form is no longer required, regardless of building materials (other than cladding) and believes lenders will be more open to mortgages without an EWS1 form. So I'm waiting until then to find out if that's true. Otherwise I'm stuck, unable to staircase, unable to sell and unable to rent out my flat. Apparently other flats have been sold in my building without an EWS1 form and it is rumoured this might be for those requesting a smaller % ownership (e.g. 25%). Not sure if that helps at all.