17:40 PM, 4th April 2022, About 2 years ago 1
In a joint statement with UK Finance and the Building Societies Association (BSA), RICS has issued new guidance to lenders to clarify the current lending position for properties with fire safety issues in blocks of flats over 11 meters. Click here
The statement indicates Providing the mortgage application meets all the lender’s other policy and regulatory requirements, we can confirm the following lending position:
Where the EWS1 form or equivalent assessment shows that remediation is not required – Lenders will continue to lend
A1, A2 or B1 rating – Lenders will continue to lend
Where the EWS1 form or equivalent assessment recommends remediation – Lenders will take the necessary steps to facilitate lending where a costed and funded remediation plan is agreed with committed dates for starting and finishing all specified/required work*.
A3 or B2 rating – Lenders will take the necessary steps to facilitate lending where a costed and funded remediation plan is agreed with committed dates for starting and finishing all specified/required work*.
The above is assuming all other criteria have been met.
Lenders and RICS will continue to work with Government and key industry stakeholders to develop a proportionate approach to addressing this situation for leaseholders. This will include a further review of lending and valuation policies in relation to lending on properties rated EWS A3 or B2, once the Building Safety Bill becomes law and enshrines the statutory protections for leaseholders and details the operation of the Remediation Order regime.
*Lenders will work with the Government, RICS, the Building Societies Association (BSA), and UK Finance to establish a framework to enable verification of these key requirements, to ensure transparency for leaseholders, and prospective purchasers.
The initial lenders that are already supporting the above guidance are Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest, Santander
Previous ArticleCommercial rent - what to charge?