EWS1 form - possible impact on purchase?

londonftbhelp

Hello all,

I am looking to buy a one bedroom ground floor leasehold flat in London, and I’m just about to make an offer.

The block in question is three stories and mostly but not exclusively brick on the outside. Due to its low height, the property does not legally require an EWS1 form, as per the official guidance https://www.rics.org/uk/news-insight/latest-news/fire-safety/cladding-qa/

The seller has confirmed it does not have an EWS1 form. however, as I understand it, some mortgage lenders will ask for an EWS1 form anyway, including on buildings that do not legally require one.

Does anybody know which uk mortgage lenders are particularly liable to ask for an EWS1 form in such a scenario? If you were in my place, would you be more hesitant to put in an offer?

As far as I concerned there is nothing I can do about this until the surveyor comes out and potentially asks for an EWS1 form to be done, but I want to sense-check this with you all.

thanks

propertyhunter

So each lender has their own policy as you know - and probably take a view after their surveyor has inspected it. Twitter/FB might be your friend when it comes to learning about which lenders are less risk averse. But you're the buyer, you want to buy a flat that every lender will be happy with, so it's not an issue when you come to sell. 

You need to make sure you do your due diligence about the risk the building poses during the conveyancing process. Obtain the latest fire risk assessment from the management company and also ask whether there are any fire safety works planned for the building, and if so, the anticipated costs. You say it's not exclusively brick - so find out what the other parts are. Also, it's not just cladding on the façade of the building to think about - you want to find out about the other materials used that you can't see (e.g. cavity wall barrier systems or lack of).

londonftbhelp

Thank you, hugely helpful

K_S

@londftbhelp Lender policies in this regard are clear as mud (or at least not implemented as they read) and it largely depends on the valuer (third party firm instructed by the lender).

But generally speaking, things are much much better than they 12 months ago and I haven't recently had any cases where the EWS1 was a show stopper. Impossible to say anything specific for your property but if a mainstream lender is happy to lend on it, that'd be good enough as far as mortgageability is concerned. By now most EAs know well enough to be upfront about cladding issues that severely impact the chances of a mortgage.

As an example, here's what one said when my client asked -
"The building is not 18 metres so in theory does not require an EWS1 form however in our experience lenders will still want to see one in place therefore we are not convinced you would be able to get a mortgage."

It may also be worth checking for any recent sales in the block and downloading the title register to see if it was bought with a mortgage.

GDB2222

Is there a risk that things get tighter in future, so it becomes harder to sell than to buy?