Good News for Properties with Cladding from 9^th January 2023!

Following an announcement by a group of key UK lenders*, a commitment has been made to lend on flats undergoing building safety remediation works, subject to certain criteria and updated valuation guidance from the Royal Institute of Chartered Surveyors (RICS).

The news is a very welcome step forward for leaseholders trapped in unsellable properties with Grenfell-style cladding or other historic fire safety defects.

As intermediaries we have been restricted by rules and content in EWS1 forms, if the EWS1 form confirmed the property did not meet minimum safety standards, the property would be deemed unsuitable and not able to mortgage.

From the 9^th January 2023, lenders will now be able to consider mortgage applications for flats in buildings of 11 metres or more for the first time since the EWS1 crisis began. There is new criteria which includes properties that will:

·be ‘self-remediated’ by developers;

·be covered by one of the following government schemes:

·The Developer Remediation Contracts (11 metres+),

·The Medium Rise Scheme (11-18 metres),

·The Building Safety Fund (18 metres+);

·or be covered by leaseholder protections contained in the Building Safety Act.

*Key lenders include Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest, and Santander

As Advisers we will validate with individual lenders what documents and evidence they will accept under these rules as this will be unique to each property.

Call to discuss your options with a qualified Adviser on 01245 956900 or contact us at enquiry@mortgagebusiness.net