EWS1 forms

EWS1's and the cladding issue as a whole is redefining "omnishambles" on a daily basis. The Government make big announcements, the public think it's being resolved (or even has been listening to some of the rhetoric) and yet RICS and lenders have a completely different view - and not surprisingly, as it's their heads on the chopping block if it all goes wrong, not the politician who will have "misspoke". Whilst ministers, lenders, RICS and developers thrash it out and try to pass the buck to each other to pick up the tab, it is the members of the public who own these properties that suffer - unable to move, unable to remortgage and potentially looking at massive bills from their management company for EWS1 reports, or for works to make the property safe, which will take years. A great example of the confusion around this is one case I had on a building under 18 metres that the RICS member valuing the property for the lender said needed an EWS1 report. The building did not have one, because the management company didn't think they needed one, so weren't prepared to pay for one - checkmate. No one can now buy, sell, or remortgage until either the management company relent and get the EWS1, a lender comes along that ignores the guidance from RICS, or RICS change their stance (which will require the Government to be forthcoming with something more tangible than they have to date). The only potential winners could be those that purchased on Help-To-Buy with an Equity Loan. As the property will be worth next to nothing (compared to what they originally paid), it means their debt to the HTB scheme is also tiny, so if they can get the money to repay it they are in a great position. However, from anecdotal evidence, it would seem that they are being blocked (or Government agencies are trying to block them) from doing this. This is yet another aspect of the cladding saga, I'm sure there will be more, as the issues are so far reaching.

Lenders and EWS1 forms go together about as well as Boris and the truth. It's a nightmare trying to arrange a mortgage on a block with cladding and as such I don't get involved

For lenders a EWS1 form is a simple request however for a buyer it can be a nightmare, if a building has cladding chances are a lender will want one, to actually get one can be much harder, Many lenders are insisting that an EWS1 is completed on ALL buildings – even those below 18 metres in height. An ESW1 is not needed for buildings less than 18m high. If a building is under 18m then by law it doesnt require one however if a lender requests it then chances are you wont get a mortgage without, as the EWS1 is provided by the buildings management to get them to fork out for one is a whole new challenge

A fair few lenders will require the EWS1 form if it has more then 4 floors which if it's not already been done can be an absolute pain in the proverbial as it can take ages to get but some management companies of flats who are actually awake at the wheel will have already had these done since the tragedy of grenfell.