Should I buy a flat with cladding?
Buying
Flats or apartments have been a really popular pick with first time buyers, professionals and those looking to downsize. But recently many apartment owners have suffered from issues related to the cladding on the building. Here we look at what cladding is, what to ask if you are considering purchasing an apartment and what paperwork should be in place.
So, what is cladding?
Simply put, cladding is any material used to cover a structure’s exterior; think of a jacket on a person. Cladding can come in all shapes and sizes and can form different purposes from providing protection from the rain to increasing the thermal performance of the property. In some circumstances, the cladding on the property can be purely decorative and its only purpose is to improve the look of the building.
Why is cladding such an issue?
Unfortunately, back in 2017, a horrific fire occurred at Grenfell Tower and sadly 72 people lost their lives. Following an investigation into the incident, it was confirmed that the cladding on the building contributed to the spread of the fire.
Following this shocking finding, the government announced that owners and managers of apartment buildings had to review the cladding on their buildings in order to hopefully stop such a terrible event reoccurring. As a result of the government’s actions, mortgage lenders started seeking confirmation that buildings met all necessary safety requirements, and some lenders started to require the production of a written statement to confirm that the property met these requirements. In conjunction with the building society association and UK finance, the royal institute of chartered surveyors (RICS) produced an external wall fire review form called an EWS1. Since the production of the EWS1, mortgage lenders have been requesting the form before agreeing to lend on properties with cladding.
What should I ask if an apartment I want to buy has cladding?
If you have found a property that matches your needs, and the building has cladding, you should speak to a professional before proceeding. A good place to start is by speaking with building surveyors and mortgage advisers. Both of these professionals have likely come across this scenario many times before, and seeking their advice is a must.
If you have been given advice and you wish to proceed. You should seek to confirm if the cladding has been surveyed and ask for written confirmation of the result of the inspection. It’s likely your mortgage provider will also do this, but it’s best not to rely on them or their findings.
What paperwork should I ask for if the building has cladding?
The best place to start is by asking for the EWS1 certificate. The EWS1 certificate has five ratings, if the rating is either A3 or B2 it means remedial work is likely required. When you purchase an apartment you become liable for contributing towards its upkeep through the service charge. Unfortunately, where cladding remedial work is required, it is usually quite costly. The responsibility tends to fall onto the leaseholders to pay. So make sure you obtain the EWS1 certificate.
If the apartment has a A3 or B2 EWS1 rating all is not lost. But you must speak with a professional before proceeding. Through action taken by leaseholders across the country, the government were notified of some leaseholders being asked to pay over £100,000 towards the cost of cladding replacement! The government recently stepped in and introduced the Building Safety Act which means leaseholders in ‘relevant buildings’ cannot be charged for any fire safety issues caused by the original developer. Furthermore, several housing developers have signed a pledge to fix fire safety defects at their own cost, so the leaseholders should not have to pay. Your conveyancer should obtain a copy of the developer’s letter stating they will take responsibility for any remedial work and confirmation that the developer has signed the cladding pledge and the government’s developer remediation contract.
Purchasing an apartment with cladding needs careful consideration and specialist advice should be sought before proceeding. Property professionals such as building surveyors, mortgage adviser and conveyancers should be able to assist and provide the necessary advice.
