In June 2017, a fire broke out in a fourth floor flat that spread rapidly and destroyed the Grenfell Tower in London, a tragic, modern disaster with huge implications.
The primary cause of the fire spread was the highly combustible material used in the cladding on the building. In direct response, the government banned the use of combustible cladding in all new residential buildings of at least 18 metres in height.
Where does that leave existing older buildings?
Often, cladding can be hidden and only becomes apparent, or an issue, when you wish to sell or re-mortgage your flat. The reality is that many people are still living in flats surrounded by cladding and are now trapped in what the media refers to as a ‘mortgage prison’.
If your landlord has not already done so, they should test the cladding on your building to determine if it poses a risk. If the cladding needs to be replaced, it will likely form part of the service charge and be recoverable at leaseholder expense.
Media coverage has reported leaseholders being billed up to as much as £115,000 to remove the style of cladding used on Grenfell tower. All of this has added another layer of stress and anxiety to people trying to sell their flats in the middle of a pandemic.
COVID-19 has made what was a bad situation more difficult as the pressures of moving increase.
Unfortunately, in an already difficult climate, cladding issues are causing delay, and even halting, the sale of flats in some cases.
Many high street lenders are asking and insisting on being supplied with an EWS1 form before they will lend money as proof, and to act as a guarantee that the cladding is safe. An EWS1 form is issued following a process which enables the owner of the building to confirm the external wall system has been assessed for safety by a qualified professional.
Many leaseholders are struggling to get hold of the EWS1 form given the shortfall in suitably qualified professionals to carry out these assessments. A backlog has developed again, leaving many homeowners unable to sell their properties.
The cladding scandal has been overwhelming to those affected by it, with very few straightforward answers and extensive delays resulting in sales falling through as a result. The only real way this can be sorted without making some leaseholders potentially bankrupt is for government money to be allocated for remediation works.
Some funding has been allocated but it is not enough to cover all of the remediation works needed on the many buildings affected. It seems the issues are to be with us for some years to come.
More positive news is that the government has allocated budget to train more experts to undertake the EWS1 process to try and meet the increasing demand. Further, in November, the government published a press release announcing owners of flats in buildings ‘without cladding’ would not need an EWS1 form to sell or re-mortgage their property.
Additionally, a new set of laws is under discussion which would help to prevent future cladding problems and fix current ones; however, the pandemic has slowed down the process of laws changing any time soon.
If you are affected by cladding issues and thinking about buying or selling such a property, please contact us on 0345 646 0406.
Alternatively, fill in our online enquiry form and we will try to find solutions to assist with ensuring your sale or purchase proceeds as smoothly as possible.