Buying a flat under 18m with Timber Cladding

AntKoj

Hello everyone,
I am at the tail end of buying my first flat and I have recently learned of a cladding issue. (Timber Cladding on balconies and the rear side of building.)
 I’ve been advised by the management company that the works are under way and that they are following ‘Path 4’ of EWS1 form. It actually turns out my Lender doesn’t require an EWS1 as the building is less than 18metres in height. Nonetheless, the costs of the remediation will fall on me as well as the other leaseholders. The cladding itself has been classified as 2B and they say they aim to complete within 6 months but they have failed to give any details of cost. I’ve been lucky enough to speak to a couple of people that are leaseholders of the building and they have been told by friends that work in the sector that it will work out to be around 2K per flat, but this of course is speculative. I’d rather hear this from the Management Company. I do want to continue with the purchase but it will now have to be at a reduced price..

What do you think ?

Anyone been through anything similar?

NameUnavailable

Your solicitors should be asking the freeholder/management company about works in the pipeline and estimated costs. What have they told you?

Dusk1983

Can I ask which lender are you with?

NinjaTune

As NameUnavailable says, your solicitor should be querying these costs with the Management Company.

I recently bought a flat and the Management Company had forecast costs of approx £2k in 4 years for work to the building (also low-rise, partially clad with timber).  I didn't reduce my offer as the works aren't imminent like yours and accepted them as my lower offered already covered the costs.  They may end up higher but that was the risk I was prepared to take.
 
If the vendor can't provide the information then get your conveyancer to find out the details.

katie91_2

You could ask the seller for a retention to cover the works. We are currently in the process of selling a flat that has an A1 but works are required on another building on the lease (it’s complicated) and have taken this route to cover any costs the buyer will face. Any funds not spent in the agreed period are returned to the seller.

AntKoj

katie91_2 said:

You could ask the seller for a retention to cover the works. We are currently in the process of selling a flat that has an A1 but works are required on another building on the lease (it’s complicated) and have taken this route to cover any costs the buyer will face. Any funds not spent in the agreed period are returned to the seller.

Yeah, that’s exactly what I have put forward to my solicitor. Just waiting to hear back. Can I ask how much your retainer was?

AntKoj

NameUnavailable said:

Your solicitors should be asking the freeholder/management company about works in the pipeline and estimated costs. What have they told you?

My solicitors have been..but they management company are being very helpful. They’ve told us that they are currently in the process for obtaining an EWS form as outlined and determined by industry bodies ARMA and LEASE.

“The extent of remediation works has been identified by the fire engineers in their report.  

The next steps in the process will be to plan the removal of the parts of the timber cladding from buildings  and the application of the management regime as detailed by the fire engineers.  Following on from this the works to produce designs for the replacement screening and balconies will be undertaken.  It is expected that the plans for remedial works will need to be approved by the council in a planning application.”

All of this info but no word on any idea of costs. Very strange.

Hoping my solicitors will have better news this week..

AntKoj

NinjaTune said:

As NameUnavailable says, your solicitor should be querying these costs with the Management Company.

I recently bought a flat and the Management Company had forecast costs of approx £2k in 4 years for work to the building (also low-rise, partially clad with timber).  I didn't reduce my offer as the works aren't imminent like yours and accepted them as my lower offered already covered the costs.  They may end up higher but that was the risk I was prepared to take.
 
If the vendor can't provide the information then get your conveyancer to find out the details.

Thanks for your response. I was thinking this but I’m not sure how helpful it will be..from my understanding only Fire Engineer/Specialist are they only ones that can conduct these surveys..

AntKoj

Dusk1983 said:

Can I ask which lender are you with?

Pepper Money