EWS1 B1 report - how worried should I be

LegallyBRIKD

Hello everyone, 

Been reading around the forum and there is definitely some good information here. 

I am a FTB and currently looking for some advice regarding an EWS1 B1 flat. It's priced right, actually a very good deal that is affordable - anything else is at least 50-100 miles out or on less favourable leasehold terms.

The flat was granted a B1 rating by a fire engineer at the start of the year. The report however is quite sparse and refers to the assessment having been completed in a "wholistic" way. The materials stated don't give me cause for concern as they have indicated rockwool insulation, firebreaks, and aluminium panels. 

My concern is the report is a bit sparse and doesn't indicate why the B1 rating has been given, though it indicates some combustible materials are present. There are balconies with timber floors, but in the absence of confirmation I'm left speculating. The report also doesn't specifically mention an intrusive survey, only that the site was visited and assessed. Photos are of the exterior only.

Does anyone know if the a B1 is now generally given to cover surveyors, or am I likely to find other surprises?

K_S

@legallybrikd If you need a mortgage then a B1 rating is likely to automatically rule out quite a few lenders who will only consider A1 and A2. Even with the ones that don't rule out blocks with B1 ratings, it will be subject to the comments of an extra cautious valuer.

That probably contributes to the flat being priced keenly in comparison to the competition with no cladding issues.

LegallyBRIKD

@K_S Many thanks for your reply. I would need a mortgage and currently have an application in with Leeds Building Society, I understand they completed a valuation almost two weeks ago, though I haven't heard anything back. 

I've managed to find a portion of the report that states "the report is limited to the information provided... comprise a visual inspection of accessible areas only, no testing, measurements or calculations. It was not possible to verify that the observed conditions were applicable in all similar locations within the façade".

It's the lack of confirmation on what the reason(s) of a B1 are, which I find surprising given the political situation and the need for these forms.  

Any idea if this is currently the norm for EWS1 situations in the market? 

K_S

@legallyBRIKD Apologies, I'm not an expert on the contents/specifics of these EWS1 forms.

However, if Leeds did a valuation 2 weeks ago and you haven't heard anything back, then that would probably mean that they are fine with the B1 rating (in combination with the building particulars) at this stage though there may be a further review of the EWS1 during conveyancing to verify the issuer's credentials. 

Out of curiosity, Leeds has been pretty quick with processing recently, are you still waiting on an offer and have you received a copy of the valuation report from Leeds (don't know if they share it or not) or your broker?

LegallyBRIKD

@K_S I have received an offer as of yet, and don't believe my broker has the valuation report. 

My timeline is:

2nd July - DIP and two soft searches showing
16th July - Full application went in (not sure on the delay with the broker) and hard search showing
26th July - Leeds requested information regarding a direct debit
27th July - Valuation undertaken (was some delay due to vendor and access)
3rd August - Leeds requesting further information regarding the same direct debit (wanted proof an amount had been paid and finalised) 

I assume each time it has pushed me back further in the queue, which hasn't really been a major issue given the time its taking solicitors to review - I'm sure they are still awaiting a load of documents vendor side as well. 

NameUnavailable

You HAVE received a mortgage offer?

I would be more concerned with the upcoming costs that your management company will be charging to upgrade the building (they will probably replace the cladding and have to fit new balcony floors). You could be looking at a substantial bill for that work!

LegallyBRIKD

NameUnavailable said:

You HAVE received a mortgage offer?

I would be more concerned with the upcoming costs that your management company will be charging to upgrade the building (they will probably replace the cladding and have to fit new balcony floors). You could be looking at a substantial bill for that work!

That should read haven't, it was a typo.

From my understanding the report indicates the building doesn't have combustible cladding (solid aluminium panels) or insulation, which is earthwool/rockwool and not anything like kingspan.

It's a mid-rise development, just over 18m. Any idea how much balcony flooring would cost to replace?

L_T_88

NameUnavailable said:

You HAVE received a mortgage offer?

I would be more concerned with the upcoming costs that your management company will be charging to upgrade the building (they will probably replace the cladding and have to fit new balcony floors). You could be looking at a substantial bill for that work!

A B1 rating means that the Fire Engineer has assessed that whilst there may be some combustible material within the build-up of the external wall but that no remediation is required.

That generally gives lenders sufficient comfort to lend. Of course the EWS1 only lasts for 5 years so there is the possibility that a future assesment (in whatever form (assume the new PAS document, I don't imagine we'll still be talking about EWS1 in 5 years time) comes back with a different rating and that remediation is required.

Is the signatory qualified to have signed the form at option B? 

K_S

LegallyBRIKD said:

@K_S I have received an offer as of yet, and don't believe my broker has the valuation report. 

My timeline is:

2nd July - DIP and two soft searches showing
16th July - Full application went in (not sure on the delay with the broker) and hard search showing
26th July - Leeds requested information regarding a direct debit
27th July - Valuation undertaken (was some delay due to vendor and access)
3rd August - Leeds requesting further information regarding the same direct debit (wanted proof an amount had been paid and finalised) 

I assume each time it has pushed me back further in the queue, which hasn't really been a major issue given the time its taking solicitors to review - I'm sure they are still awaiting a load of documents vendor side as well.

@legallybrikd If you've used a broker then Leeds does upload the val report to the case. And with the val having happened 2 weeks ago, it should most likely have been done by now as it usually takes no more than a couple of days. Might be worth dropping an email to your broker asking for a copy as the valuer comments on the report may throw some light on your questions.

LegallyBRIKD

K_S said:

LegallyBRIKD said:

@K_S I have received an offer as of yet, and don't believe my broker has the valuation report. 

My timeline is:

2nd July - DIP and two soft searches showing
16th July - Full application went in (not sure on the delay with the broker) and hard search showing
26th July - Leeds requested information regarding a direct debit
27th July - Valuation undertaken (was some delay due to vendor and access)
3rd August - Leeds requesting further information regarding the same direct debit (wanted proof an amount had been paid and finalised) 

I assume each time it has pushed me back further in the queue, which hasn't really been a major issue given the time its taking solicitors to review - I'm sure they are still awaiting a load of documents vendor side as well.

@legallybrikd If you've used a broker then Leeds does upload the val report to the case. And with the val having happened 2 weeks ago, it should most likely have been done by now as it usually takes no more than a couple of days. Might be worth dropping an email to your broker asking for a copy as the valuer comments on the report may throw some light on your questions.

So as it is I have actually received an offer through today, and my broker has been able to provide the valuation report... which is fairly sparse. It essentially only has a disclaimer stating that they have prepared the valuation based on the information in the EWS1 form prepared by a professionally qualified third party - with the usual disclaimer regarding no liability etc etc. The report doesn't state anything further, just that its been valued with the price accurate. 

L_T_88 said:

NameUnavailable said:

You HAVE received a mortgage offer?

I would be more concerned with the upcoming costs that your management company will be charging to upgrade the building (they will probably replace the cladding and have to fit new balcony floors). You could be looking at a substantial bill for that work!

A B1 rating means that the Fire Engineer has assessed that whilst there may be some combustible material within the build-up of the external wall but that no remediation is required.

That generally gives lenders sufficient comfort to lend. Of course the EWS1 only lasts for 5 years so there is the possibility that a future assesment (in whatever form (assume the new PAS document, I don't imagine we'll still be talking about EWS1 in 5 years time) comes back with a different rating and that remediation is required.

Is the signatory qualified to have signed the form at option B? 

The B1 has been signed off by an individual with a whole load of qualifications, upon checking they appear to be certified by the Institution of Fire Engineers. Is there a good site that paraphrases/highlights the key elements of PAS that are likely to apply down the line? I understand it's still going through Parliament? 

Having spent longer at it the EWS1 issue appears to be a more generalised building/fire safety and construction industry issue.