Minor ACM Cladding = unmortgageable

Minor ACM Cladding = unmortgageable

9:28 AM, 24th October 2018, About 4 years ago 4

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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?


Editors Note:

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.


Neil Patterson

9:31 AM, 24th October 2018, About 4 years ago

Hi Sarah,

I always think it is dangerous to try and find the one lender that will help. It will always restrict demand and hence price and what if they change their mind or there are even more future problems with ACM cladding.

Personally I would walk as it is not worth the risk unless you have many properties to spread the risk or are an expert.

Annie Landlord

13:39 PM, 24th October 2018, About 4 years ago

I also think it is too risky at the moment to entertain the idea of buying flats like this. Its very possible the entire block will be deemed unsafe, and it then becomes the responsibility of each flat owner to contribute to the eye watering costs of removing the cladding

Rob Crawford

13:50 PM, 24th October 2018, About 4 years ago

This will be of interest to many landlords with flats in small blocks with ACM Cladding. It would appear that risks associated with high rise blocks such as Grenfell are being unjustifiably applied. Fire risks are significantly lower. It reflects the risk adversity of mortgage providers. I wonder what the take is on this by insurance companies? Many landlords / owners / block managing agents may be unable to sell or take out insurance cover unless cladding is unnecessarily replaced.

Annie Landlord

11:27 AM, 25th October 2018, About 4 years ago

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