EWS1 Forms - the latest?

Trigger79

I have a flat which was built in 2006, in a 3 story block, under 18m. 

The housing association that own it haven’t commissioned an EWS1 form, but are looking at the new PAS standard at some point in the future. 

I am very keen to sell it now for personal reasons. 

I realise I will get less for it without an EWS1 form, but I am interested to know if it’s even possible to sell at the moment. 

I’ve been told by an agent that they sold two in the block this year, and that some lenders are requiring EWS1 on blocks under 18m, and some aren’t, it’s the luck of the draw. 

I’m going to give it a go, but are there any things I can do early in the process that will help things move more smoothly? One thing I’m keen not to happen is to find a buyer, but then have to wait months for them to find out their mortgage company won't lend. The agent suggested this is about making sure they have a broker that really understands the situation, who is lending, who isn't and so on. 

Any other tips, or any updates on what the situation is currently?

newdriver101

@Trigger79 Does your flat have any cladding?  Or stacked balconies?
If you look at the RICS guidance, there is a decision tree with a step-by-step guide of what questions the surveyor has to ask/assess to make a decision so this may give you an idea of whether an EWS1 may be required for your building. Obviously this is not gospel - some lenders do not follow RICS guidance + some may give surveyors more/less discretion to request this…

In my case, my building is under 18m and I have been back and forth with my managing agents for several months trying to get an EWS1 form but they just won’t budge.  MA/Freeholder say EWS1 is not required and won’t engage any further…  I struggled to sell or even get a LTB/BTL (tried 3 different lenders and all requested an EWS1).  I have finally resolved to try and get consent to let as I need to move - it means paying 2 mortgages + additional stamp duty….  so I’m afraid, I don’t really have any good news for you…

The last surveyor I spoke to said RICS updated their guidelines in March and more banks are following the RICS guidelines since this update (well he would wouldn’t he?!) but this means it’s possible that some banks that didn’t request EWS1 pre-March may start requesting them now…

You can’t control who your buyer uses as a broker or lender so if there are cladding issues + an EWS1 form is required (and you can’t provide this) then unfortunately I think cash buyer/auction may be your only options so you may need to start looking into those options…

Trigger79

Hi @newdriver101 Thanks for such a considered, thoughtful reply. 

No, it's a brick clad building and I think there's a balcony on a few of the flats at the top of the building but none otherwise. This doesn't mean it won't need work but my guess is that it wouldn't be major. 

Your points align with my understanding. I have spoken to three agents today and it does seem that a cash buyer and possibly an auction at a reduced cost is the best option. I think the first who suggested that they are selling to buyers with mortgages was BSing me. 

There also do seem to be a few companies around that specialise in cash buyers, and I think this may be a good option - as I'm guessing experienced cash buyers will be more willing to take a risk based on seeing the building themselves, as they don't have to persuade a third party. I spoke to one today who basically said they can usually sell at 80% market value or more and fairly quickly even without EWS1, which right now I'd be ok with, if for nothing else that I have no idea how long it'll take to get all this resolved. I think bearing in mind this has all been going on for five years I expect progress to continue to be glacial!

I think I'm going to give this a try and see how it goes. 

Thanks so much for the reply, I really appreciate it. 

propertyhunter

I sold my flat without an EWS1 in June 2021 and it was under 18m. I made sure I had an estate agent who knew all about the implications of not having one. He lined up a buyer who was using the estate agent's broker and solicitor - the broker was keen to get the deal done and found them a mortgage with a bank who didn't mind not having an EWS1 (but two independent surveyors came around to check the property). The buyer still had to be confident of proceeding knowing the potential implications, which the solicitor would have made them aware about. 

I was very lucky.

Trigger79

Thanks, that’s really interesting. I can see that some flats must be selling, It sounds like you took all the right steps and as you say probably a bit of luck helps!