Today, Thursday 24 April, UK Finance has published an update to the current lender statement on cladding. This update covers:
- Reliance in the mortgage journey on EWS1 forms more than five years old
- The scenario of an EWS1 form in the mortgage journey by an invalid signatory
Leaseholders and prospective buyers will now have more clarity on purchasing homes with building safety issues, following a key update from mortgage lenders and the Royal Institution of Chartered Surveyors (RICS) regarding EWS1 forms:
EWS1 forms more than 5 years old
When EWS1 was developed in 2019, forms were nominally given a 5-year life as it was anticipated that buildings with defective cladding would have been remediated within this timeframe.
As some early forms are now approaching their five-year anniversary there is a need to ensure the market for flats in affected blocks continues to operate without friction. To ensure this happens, the lender signatories to the original statement further pledge not to require wholesale reviews of EWS1 forms which are more than 5 years old.
EWS1 forms by an invalid signatory
Where there is an invalid signatory of EWS1 forms, the lender signatories to the original statement further pledge not to require wholesale reviews of affected EWS1 forms. This is subject to individual lender policy and risk appetite. Lenders may consider alternative evidence about the remediation status of a building and whether the lease is a qualifying lease under the Building Safety Act 2022, in England.
To read the UK Finance lender statement update in full CLICK HERE
