ACM Cladding - which lenders will

borford · 5 August 2019 at 1:51PM

I am in the process of selling my flat in Manchester. Unfortunately it is fitted with ACM cladding, which at the time of development was in line with guidelines. However since the Grenfell tragedy, the Government has revised guidelines and ACM is now banned.

Our management company and developer have made leaseholders aware that they will be replacing the cladding and have put in place a 'waking watch' (24/7 x 2 fire wardens). The cost of this is being covered by the developer.

I have a buyer in place who is keen to progress, however he is using Halifax as a lender and they have asked for the following, which must be provided during the survey:

We require the Building Owner and/or its agent, as the 'responsible person' under the Regulatory Reform (Fire Safety) Order 2005, to produce a written statement to confirm that the cladding system(s) (both ACM and non-ACM materials) for the subject property meets the requirements of the current guidance from MHCLG. The statement must be prepared by a suitably qualified independent professional advisor who is a member of one of the professional bodies listed by the Ministry of Housing, Communities and Local Government (MHCLG) in Information Note 1 (or any subsequent list)"

I requested this information from our property manager and the response was:

"Please note we cannot produce the statement you require. If the subject property was meeting the requirements of the current guidance from MHCLG as requested below, there would be no need for the works we are currently undertaking. It will take around a year time for the work to complete before this can be confirmed."

Does anyone know of a way of progressing with the sale? Or of any high street lenders who would be willing to lend?

Thanks for any and all help in advance.

muhandis · 5 August 2019 at 1:58PM

Unfortunately, from what I can see, I don't see a way out other than waiting for the work to complete and then market it or sell to cash buyers only (probably at a heavy discount).

In the first instance, I would talk to a mortgage broker local to the area who is likely to have worked with such flats.

If you aren't desperate to sell right now, in your place I would wait for the work to complete (1 year will fly by) before trying to sell it.

guitaristgba247 · 6 August 2019 at 9:13PM

Hi there,

I was wondering if you've had any resolution to the issue?

I am also having similar situation currently, where my buyer's lender requires exactly the same set of written statement as mentioned regarding cladding.

The issue with mine is that even the management company aren't able to provide any information on the cladding and we have now reached out to the freeholder waiting for reply. The only positive thing at the moment is that the management company has mentioned our exterior facade is not ACM cladding and is cement screed finish. This is still not a good enough statement for the lender and they keep pressing for the statement, otherwise my buyer would not be able to lend with this lender.

Anyone else could shed some light on this would be great.

Many Thanks

borford · 7 August 2019 at 1:38PM

Hi,

No not yet. I have tried to offer assurances to the buyers lender that the cladding is being replaced, but they have said that it has to be inline with current government guidelines. It won't be for about a year whilst the work is going on.

My buyer is speaking with a mortgage advisor and I have engaged with mine to find out whether there are other lenders who are more lenient.

I think you really need to push your management company. They should be required to provide this information, as they have tested the exterior as you mentioned.

Thanks

muhandis · 7 August 2019 at 1:46PM

I agree with you, but from their point of view, unless they absolutely have to, they will do anything to avoid putting anything down in writing that might come back to bite them hard. That's probably the advice they get from their lawyers.

borford wrote: »

They should be required to provide this information, as they have tested the exterior as you mentioned.

[Deleted User] · 17 August 2019 at 7:57AM

borford · 27 August 2019 at 1:53PM

My mortgage advisor found a lender than will (Santander), however due to the nature of the way in which my buyer intends to fund the property (long story), I'm not sure he's going to progress.

haras_nosirrah · 27 August 2019 at 2:39PM

santander have just told me that they would only accept if the cladding has been fire tested and confirmed safe according to the new regulations.

[Deleted User] · 27 August 2019 at 2:40PM

muhandis · 27 August 2019 at 3:08PM

Lemonade2018 wrote: »

May I ask what your situation is...are you buying or selling?

OP appears to be selling.

borford wrote: »

I am in the process of selling my flat in Manchester. Unfortunately it is fitted with ACM cladding

haras_nosirrah · 28 August 2019 at 2:04PM

Am researching this for a client who is looking to buy a property with amc cladding.

Have contacted every Bdm I can and nearly all are saying no until the cladding is removed or until the property checks confirm it is acceptable to the new standards.

I have had a lender come back as a yes with a 40% deposit

ACM Cladding - which lenders will

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