Minor ACM Cladding = unmortgageableMake Text Bigger
My niece has been trying to buy a flat in Hackney Wick, a relatively new development next to the Olympic Park. One flat was rejected by all lenders as it had ACM cladding in the block – not on the flat she wanted to buy but on the attached 5 storey block.
It had been inspected by local fire authority & certified safe, but the valuers asked for a lot of info that couldn’t be supplied by the vendor/mgt Co so that they could assess the risk and cost of any remedial work. This could take years to work through (assessment, planning permission, out to tender, dispute with insurers etc over who will pay …). So then she moved on to another block in the same development which has less than 20% ACM cladding overall, and none is anywhere near her flat.
Again, no go with lenders. So basically these properties are now unmortgageable and therefore unsaleable except to cash buyers looking to make a slow buck. Unless anyone knows any specialist lenders?
Click Here for Ministry of Housing, Communities & Local Government: Advice for owners of buildings which are partially clad in Aluminium Composite Material (ACM) cladding systems.
Click Here for the Leasehold Advisory Service: FREE initial advice on fire safety to leaseholders in high-rise buildings, including those with ACM cladding.
ACM cladding consist of two skins of aluminium bonded to either side of a lightweight core of materials such as polyethylene (PE), polyurethane (PUR), profiled metal or a mineral core. It is a popular product because of its precise flatness, variety of surface finishes and colours, light weight and formability. However, during a fire, the panels can delaminate, exposing the core material.
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