01 Feb 2023
Good news for Leaseholders!
Since the Grenfell tragedy, thousands of Leaseholders have been unable to sell their homes due to not being able to obtain a satisfactory External Wall Fire Review Certificate (EWS1). A certificate needed for buyers to obtain a mortgage.
The EWS1 form, usually instructed by the developer of the freeholder was a way for lenders to confirm a building has been assessed for safety by a suitable expert.
Prior to 9th January 2023, a satisfactory EWS1 was required by lenders before they would consider it as suitable security for a mortgage.
This left homeowners that couldn’t provide one stuck unable to sell and move on with their lives.
Well, at the end of last year, the Government announced leaseholders wouldn’t have to foot the bill for any remediation works. This huge step forward meant lenders could more accurately assess the value of these properties and started to consult on how to fix the problem.
So in December 2022 UK Finance and the top six lenders got together and agreed to support leaseholders with a resolution. As of the 9th of January this year, the big six lenders including HSBC and Halifax have agreed to consider mortgage applications on residential buildings of a height of 11 meters and over.
This is now only subject to evidence being obtained confirming the building will be self-remediated by developers or covered by a recognised government scheme.
This evidence comes by way of the leaseholder completing a Deed of Certificate, a document to be provided to your agent when you are looking to sell.
All round great news for leaseholders and first-time buyers looking to secure a new home.