Do I need to worry about cladding?

Rachel90167

Hi All

I'm in the process of purchasing a flat which has some wooden cladding on parts of the building. The block is only three stories and less than 18m, so no EWS1 form is required (as far as I'm aware). I've had a mortgage offer and the valuation survey for that came back fine (I presumed if there were any cladding issues then I would have struggled to get a mortgage offer).

I've had the vendor information pack back, and they state that there are no known planned works due, and no known issues with the building. However, on further digging through the papers I've received it looks like the management company are planning to arrange an inspection of the cladding. I've asked my solicitor to confirm the situation, but in the meantime I'm a bit worried about what could happen if they do come back to say the inspection hasn't been planned yet but will happen at some point.

Is this something I should be worried about? My main fear is that I'll be suddenly hit with a huge charge to fix the cladding shortly after I move in.

Bookgal88

It's a tricky one. There is a chance that you could be hit with a charge to fix the cladding. But you might not be or it could be pretty cheap to resolve any issues. No-one knows. Even if there wasn't any cladding, there's always a risk you could be hit with a charge for something shortly after moving in (such as major works) and there's really nothing you can do about it. It's the risk you take when buying a leasehold property. 

Some people on here will say (IMO unhelpfully) don't buy a leasehold, but it's just not an option for everyone to buy a freehold house (myself included). Having managed to sell a flat with cladding 6 months ago, I personally ruled out purchasing anything else with any type of cladding because of the potential for costly issues. But it really depends how much you like this property, if you have alternative options and if you have the money to pay for remedial works should they be required. 

NameUnavailable

How much of the building has cladding? How many flats in total?

It sounds like it's OK but the management company will have it inspected for certainty.

On the subject of charges, the annual service charge will usually cover insurance, communal areas lighting/cleaning/gardening, managment fees, accountancy fees and a sum for routine maintenance. Anything else will be billed additionally and there is a Section 20 process if the works are going to cost you over £250.

Be aware that there's no cap on the amount you can be required to pay in a year, and if you don't pay your lease could be forfeited (i.e. you lose your flat). It's rare but CAN happen.

As part of the conveyancing process your solicitors will obtain details of the last few years costs and accounts so you can see what has been spent historically (and details of any intended works as you have already mentioned).

If you disagree with works you can ultimately take it to tribunal - e.g. if the management company said they are going to replace the cladding and you feel that the work isn't necessary, you could argue to case at tribunal but you would have to pay your costs whatever the outcome and some leases allow for the freeholders to charge their legal costs back under the service charge. With legal costs being what they are it might work out cheaper just to stump up for the work in the first place!