EWS1 under 18m high - Waiting on update from mortgage company

redrabbit29

Hi 
I'm not here to ask questions but more to put this in writing to maybe help others. 

We've just resolved a 2 year legal battle with our freeholder over major works. We settled in the end and have just paid £15k. They've replaced all cladding, removed asbestos, rebuilt balconies, etc. Everything basically.

When this was finally resolved we marketed and sold out flat. It is:
1) 3 storeys
2) less than 18m
3) brand new outside due to recent work

Everything was seemingly good until natwest refused to go ahead without EWS form.

The buyer has now gone to Barclays. Verbally they've indicted that it looks OK and are doing a "desktop review" before rubber stamping. Fingers crossed. 

Our neighbour sold and moved effortlessly. This didn't even come up. Their buyer also used Barclays so we are hoping this goes in our favour. 

We should hear next week. I will update just for people's reference and to try to help in some way. 

This is a dire situation many find themselves in. It's so unfair and I can only hope there is some resolution soon or plans at least 

Thanks

nightingale101

Hi there, thanks for posting this! I am currently trying to find out if conversion flats have same issues as if you were to buy a new build flat where EWS1 is required by most lenders. I know Natwest has been super cautious with it whilst other bank like Barclays have been more lax. Is your flat in a conversion or is it purpose built? As a buyer I want to know what's the best option to go for but it looks like some banks don't care whether it is over 18m or not and as long as it is a flat or even maisonette, they will required EWS1. Unless they can maybe confirm the building materials from the freeholder?

niceguyed

I've not read anything to indicate a conversion would not come under scope. Even a favourable rating is only valid for five years. Surely the best option is to avoid buying a flat as the situation stands.

nightingale101

@niceguyed Completely agree, best option is to just get a freehold house but quite impossible for a lot of FTBs  sigh 

redrabbit29

nightingale101 said:

Hi there, thanks for posting this! I am currently trying to find out if conversion flats have same issues as if you were to buy a new build flat where EWS1 is required by most lenders. I know Natwest has been super cautious with it whilst other bank like Barclays have been more lax. Is your flat in a conversion or is it purpose built? As a buyer I want to know what's the best option to go for but it looks like some banks don't care whether it is over 18m or not and as long as it is a flat or even maisonette, they will required EWS1. Unless they can maybe confirm the building materials from the freeholder?

Hi

Sorry for the delay, the property is not a conversion, just a standard build. It looks like a row of 3 storey houses, except they are flats. 

The top flat has a balcony. There is cladding outside which is brand new (just been fitted) as part of a huge refurbishment. 

You're kind of right about some banks not caring. However many change from month-to-month. Search Twitter for "EWS1" and you'll see this. People saying BankA authorised it all without a problem, but others then say they now enforce it. It's very hard to predict accurately. 

I'm about to post a big update in my next post below

redrabbit29

UPDATE

The flat sale did all go through in the end, about 3 days ago. Barclays approved the mortgage without much issue - however their whole process took 11 weeks!!! This was nothing to do with EWS1 form but just because they were incredibly poor. 

Barclays also approved our next door neighbours last November too. So it appears they may be a good option for those in Under 18m properties. 

After application they quite quickly confirmed the funds were agreed and also they were happy to do a "desktop review" or something like this, meaning they don't need to visit site or do more checks. 

My reason for this thread was to help others who are searching for EWS1 like I was. 

MY ADVICE TO ANYONE IS:

1) Natwest refused to budge at all on the EWS1 form - even when our freeholder and brokers all told them that the block was entirely rebuilt on the outside last month at a cost of nearly £1m. New cladding, new guttering, new wood, everything, all modern and up to stanrdard, but they refused after 4 months of consideration....

2) Which brings me on to my next point. If you have a leasehold flat or ANYTHING which may be subject to EWS1 form, make sure your solicitor, your estate agent, your buyer's broker all know about it. Don't let things drag on for 4 months - this was hard for us to see at the time as we just assumed it would be ironed out and we were assured by everyone that a compromise/solution would be reached. But after 4 months a whole new application was needed which then took nearly 3 months to get authorised.

3) Join the Leasehold Advisory Facebook Group. There's thousands and thousands of members. Really comforting to see others having the same issues and struggles. It's also worth signing petitions etc to try to change this ridiculous situation. 

Thanks everyone