Mortgage offers and the infamous EWS1 form

Bfg2020

Hi. 

We are selling our flat and I’m anticipating (based on a lot of reading) that we will be asked for an EWS1 form from our buyer’s lender. We do not have one yet. One is booked in for the start of next year (and we anticipate that it will get an A1 rating - the block next to us has the form as someone sold there earlier in the year and it’s identical to us so we should get the same). Anyway, I’m nervous for how our buyers mortgage offer will come back to them. I know it won’t be issued if the lender wants the form but what exactly would the buyer be told? You can have the mortgage assuming we get a satisfactory EWS1 form? Is it issued as a condition of the offer? I feel like they are going to get frustrated we don’t have one yet so I want to be able to manage the situation. We have a copy of the form for the block next door which I figure we can use to reassure them it’s just a relatively short waiting game . Obviously we are mostly holding out for a lender that doesn’t request the form but given everything I’ve read that chance seems slim despite the fact we are <18m and don’t have cladding.

annetheman

Bfg2020 said:

Hi. 

We are selling our flat and I’m anticipating (based on a lot of reading) that we will be asked for an EWS1 form from our buyer’s lender. We do not have one yet. One is booked in for the start of next year (and we anticipate that it will get an A1 rating - the block next to us has the form as someone sold there earlier in the year and it’s identical to us so we should get the same). Anyway, I’m nervous for how our buyers mortgage offer will come back to them. I know it won’t be issued if the lender wants the form but what exactly would the buyer be told? You can have the mortgage assuming we get a satisfactory EWS1 form? Is it issued as a condition of the offer? I feel like they are going to get frustrated we don’t have one yet so I want to be able to manage the situation. We have a copy of the form for the block next door which I figure we can use to reassure them it’s just a relatively short waiting game . Obviously we are mostly holding out for a lender that doesn’t request the form but given everything I’ve read that chance seems slim despite the fact we are <18m and don’t have cladding.

I can help with some of these answers as a buyer.

One is booked in for the start of next year (and we anticipate that it will get an A1 rating - the block next to us has the form as someone sold there earlier in the year and it’s identical to us so we should get the same)
There was a news article about a woman's block which looks identical to the one next to it - the neighbouring one received an A1, their block received a B2; their block contained "affordable" units and the neighbouring one didn't. Developer I believe was Barratts.
9 out of 10 of all buildings surveyed have failed (B2, the lowest rating) EWS1 surveys. Some right next to each other and identical in appearance. So you just never know until you peel back the layers, unfortunately, but you do know there's a 90% chance your building will fail, based on current statistics.


what exactly would the buyer be told? You can have the mortgage assuming we get a satisfactory EWS1 form? Is it issued as a condition of the offer?
If the lender's valuer asks for an EWS1 and you don't have one, the flat will be given a £0 valuation. No offer can be given on a £0 valuation, not even a "conditional" one.
For me, the underwriting had been done, assessments had been passed and the lender told me if EWS1 was satisfactory to the valuer, they were happy to proceed but couldn't without the valuation - I received this info from Leeds on the phone and the info from the valuer in the form of written correspondence to the lender, forwarded on to broker and me.  


I feel like they are going to get frustrated we don’t have one yet so I want to be able to manage the situation. We have a copy of the form for the block next door which I figure we can use to reassure them it’s just a relatively short waiting game .
I know it's not your intention but placating them with next door's EWS1 report seems deceitful to me. A) it's useless for them; b) it is not a guarantee in any way that your building will pass safety assessments and c) you have no control over the situation as a leaseholder. You can't commission the survey and can't do anything about when it is done, if it is done or how it is done. It's best to be honest to the buyer about that. It's completely out of your hands; you can try to manage your relationship with the buyer and keep them onside, but not the situation.


 Obviously we are mostly holding out for a lender that doesn’t request the form but given everything I’ve read that chance seems slim despite the fact we are <18m and don’t have cladding.
All buildings have cladding, I think you mean brick cladding or non-combustible cladding? Mine does too and is also <18m, still no luck with 3 lenders. Unless govt steps in, this will be the status quo in the flat market for a long time to come.

I would also really, really not recommend any buyer buy a lease in a building of any height with any type of cladding without an EWS1. You just don't know when it'll become your headache because its application is currently in free for all mode.

Yes, I have been delayed almost 7 months due to wait for EWS1, however, at least once I've got it I know I won't have to pay for it, it's valid for 5 years and I'll know the building is rated A1 or A2 (won't proceed otherwise). I *reaaaally* hope this mess is sorted by then!

Edit to add: sorry to sound glum, I wish you the best of luck! It's a shambles down here in EWS1 land, I'm sorry you're joining us!

Bfg2020

:

Bfg2020 said:

Hi. 

We are selling our flat and I’m anticipating (based on a lot of reading) that we will be asked for an EWS1 form from our buyer’s lender. We do not have one yet. One is booked in for the start of next year (and we anticipate that it will get an A1 rating - the block next to us has the form as someone sold there earlier in the year and it’s identical to us so we should get the same). Anyway, I’m nervous for how our buyers mortgage offer will come back to them. I know it won’t be issued if the lender wants the form but what exactly would the buyer be told? You can have the mortgage assuming we get a satisfactory EWS1 form? Is it issued as a condition of the offer? I feel like they are going to get frustrated we don’t have one yet so I want to be able to manage the situation. We have a copy of the form for the block next door which I figure we can use to reassure them it’s just a relatively short waiting game . Obviously we are mostly holding out for a lender that doesn’t request the form but given everything I’ve read that chance seems slim despite the fact we are <18m and don’t have cladding.

I can help with some of these answers as a buyer.

One is booked in for the start of next year (and we anticipate that it will get an A1 rating - the block next to us has the form as someone sold there earlier in the year and it’s identical to us so we should get the same)
There was a news article about a woman's block which looks identical to the one next to it - the neighbouring one received an A1, their block received a B2; their block contained "affordable" units and the neighbouring one didn't. Developer I believe was Barratts (B2, the lowest rating) EWS1 surveys. Some right next to each other and identical in appearance. So you just never know until you peel back the layers, unfortunately, but you do know there's a 90% chance your building will fail, based on current statistics.


what exactly would the buyer be told? You can have the mortgage assuming we get a satisfactory EWS1 form? Is it issued as a condition of the offer?
If the lender's valuer asks for an EWS1 and you don't have one, the flat will be given a £0 valuation. No offer can be given on a £0 valuation, not even a "conditional" one.
For me, the underwriting had been done, assessments had been passed and the lender told me if EWS1 was satisfactory to the valuer, they were happy to proceed but couldn't without the valuation - I received this info from Leeds on the phone and the info from the valuer in the form of written correspondence to the lender, forwarded on to broker and me.  


I feel like they are going to get frustrated we don’t have one yet so I want to be able to manage the situation. We have a copy of the form for the block next door which I figure we can use to reassure them it’s just a relatively short waiting game .
I know it's not your intention but placating them with next door's EWS1 report seems deceitful to me. A) it's useless for them; b) it is not a guarantee in any way that your building will pass safety assessments and c) you have no control over the situation as a leaseholder. You can't commission the survey and can't do anything about when it is done, if it is done or how it is done. It's best to be honest to the buyer about that. It's completely out of your hands; you can try to manage your relationship with the buyer and keep them onside, but not the situation.


 Obviously we are mostly holding out for a lender that doesn’t request the form but given everything I’ve read that chance seems slim despite the fact we are <18m and don’t have cladding.
All buildings have cladding, I think you mean brick cladding or non-combustible cladding? Mine does too and is also <18m, still no luck with 3 lenders. Unless govt steps in, this will be the status quo in the flat market for a long time to come.

I would also really, really not recommend any buyer buy a lease in a building of any height with any type of cladding without an EWS1. You just don't know when it'll become your headache because its application is currently in free for all mode.

Yes, I have been delayed almost 7 months due to wait for EWS1, however, at least once I've got it I know I won't have to pay for it, it's valid for 5 years and I'll know the building is rated A1 or A2 (won't proceed otherwise). I *reaaaally* hope this mess is sorted by then!

Edit to add: sorry to sound glum, I wish you the best of luck! It's a shambles down here in EWS1 land, I'm sorry you're joining us!

Thanks for your thoughts. We are site with 5 blocks and we are the only one without a form and all others have passed I should add. We aren’t the ‘affordable’ block if that is of any consequence. Appreciate your thoughts on this but for now I’ll remain optimistic since the statistics from our personal situation are in our favour. 

My intention isn’t to be deceitful. It’s just to reassure that in all likelihood our block should pass and I would phrase any reassurance in that way - I can’t and wouldn’t lie. If it doesn’t it doesn’t and any person buying a property should, in my opinion, acknowledge there is always uncertainty around paperwork until it’s signed and delivered so should be able to interpret the intention of the reassurance we are giving. 

Thanks for the info on your mortgage application. Obviously sorry to hear of your difficulties. Appreciate you taking the time to give your input as it helps us to navigate ours. Hope your situation resolves soon. 

yllop1101

I'm in a similar position to you OP. selling, without EWS1 but no combustible cladding or balconies, 

I think/hope the rules will change soon as I've read about EWS2s being brought in for buildings without 'areas of concern', I. E. Combustible cladding or balconies, as the fire experts are being inappropriately called to assess buildings for which the EWS1 process wasn't intended for. The problem is the lenders indiscriminately demanding them without distinguishing between flats that SHOULD have them and those that don't present such a risk, I. E. Because of their height and features. 

Bfg2020

yllop1101 said:

I'm in a similar position to you OP. selling, without EWS1 but no combustible cladding or balconies, although my buyer is cash so it's just whether her conyenancer flags EWS1. All the other blocks in my development have had the assessment except for ours and 1 other as they're owned by different freeholders. I too was thinking the other blocks can act as reassurance if needed although I appreciate its not a total guarantee.
I think the rules will change soon as I've read about EWS2s being brought in for buildings without 'areas of concern', I. E. Combustible cladding or balconies, as the fire experts are being inappropriately called to assess buildings for which the EWS1 process wasn't intended for. The problem is the lenders indiscriminately demanding them without distinguishing between flats that SHOULD have them and those that don't present such a risk, I. E. Because of their

We are getting our survey done very soon  (it’s booked so at least that is something) so I just hope our buyer sticks around to wait. I suppose if they find an alternative property there is no guarantee it won’t be needed there and ultimately they want to buy this flat. It’s an added stress I could do without though! Good luck to you!