Written evidence submitted by C Lee [BSB 120]
My wife and I have used our entire life savings on our 100% privately owned flat that we bought brand new from the Builders (Fairview Homes) 9 years ago. The flat has 2 bedrooms and we have two children: age 14 and 5. Our 5 years old has been sleeping on the floor since birth because there is no space for another bed, so we seriously need to move home into a bigger home but we can’t because both valuers and lenders have applied a blanket approach to the EWS1 Form. We want more children but we can’t until we can move home.
The building is below 18 metres (3 storeys), brick built with balcony. There is a small area of concrete wall near the roof. We are on the ground floor.
Birmingham Midshires (BM) have refused to lend to us on the basis that their valuer has asked for the EWS1 Form which we cannot provide. I have spoken to a lending manager at BM and have told him that the EWS1 does not apply to my flat because it is under 18m however, he said it doesn’t matter what the government advises or what the RICS regulations say, they want the EWS1 for all flats of all height even if it has no balcony and no cladding!
I have also spoken to the Freeholder (Fairview Homes) and they said when the flats were built the EWS1 was unheard of, so they are not obliged to do anything about it! They have supplied the building safety regulations at the time when the flats were built. I have forwarded the documents to the lenders and they still insist on the EWS1.
I have also spoken to the Property Management Company (Neil Douglas Property Management) and they have said there is no legal requirement for them to get EWS1 so they are not doing it!
We as leaseholders have no right to get the EWS1 ourselves, because it has to be done on the whole building, not just my own flat. So this must be done either by the Freeholder and/or the Property Management Company.
Essentially, we are and trapped and imprisoned in our hard earned flats! The lenders I know that have applied a blanket approach to the EWS1 include Birmingham Midshires, Halifax, HSBC, Barclays, Santander, NatWest and Nationwide.
I therefore ask and call for the government to:
- put themselves in our shoes and think pragmatically to resolve the trap that we are in as a matter of urgency. There are millions of people who are trapped, just like us!
- make clear that the EWS1 must not be used for buildings below 18 metres.
- legislate the above to stop lenders ignoring government advice/regulation.
Although the Chancellor Rishi Sunak has temporarily waived the stamp duty in an attempt to boost the housing market, but he has no clue that there are millions of people in this country (just like us) who are trapped and unable to get a mortgage because lenders and valuers have applied a blanket approach to the EWS1. The housing market is stalled for people who want to get on the property ladder, people who want to downsize, people who want to upsize, and people who want to remortgage because:
- prospective first time flat purchases cannot get a mortgage on flats;
- flat owners cannot upsize because banks won’t lend on their flats;
- bigger houses up the chain can’t move because flat owners who want to upsize can’t sell.
We (like millions of people in this country) are stuck in out flats forever: cannot sell, cannot remortgage, cannot move, cannot have children.
The government really need to put their thinking caps on and act urgently, enforce banks to absolutely not require EWS1 for below 18m, as simple as that.
The below is a publication by Birmingham Midshires in August 2020:
We're providing guidance on the process for properties where potentially combustible cladding systems, materials and / or attachments for example balconies are either known or suspected to be present.
There is a requirement to obtain a statement prepared by a suitably qualified independent professional before the surveyor can provide a valuation. A new industry-wide form has been introduced to provide a consistent approach. The External Wall System form, referred to as an EWS1 form, must be sent to us for any building with potentially combustible cladding.
The EWS1 form is required to confirm the status of the external wall system and any applicable attachments for example balconies. The form is primarily intended for buildings over 6 storeys (>18 metres) in height but could be requested for any building below this height where the surveyor has specific concerns. In England, Wales and Northern Ireland the form is in respect of a particular building, once received we do not need another form for another customer for the same building. In Scotland we require an EWS1 for individual flats. An EWS1 form is valid for 5 years.
It's the responsibility of the building owner and / or its agent as the responsible person to confirm the subject property meets the requirements of the current guidance from the Ministry of Housing, Communities and Local Government (MHCLG) and that the external wall system has been assessed by a suitably qualified independent professional advisor who will provide the building owner with the completed EWS1 form. The individual must be a member of one of the professional bodies as listed by the RICS - List of relevant professional bodies. In Scotland individual clients will have to source their own EWS1.
For purchase cases a special condition will be added to a mortgage offer to instruct the conveyancer to advise the customer that the offer has been made on the reliance of an EWS1. It will also ensure that the customer knows that neither we nor surveying providers are liable for the information that was contained in the EWS1 form.
New Build
For New Build high rise blocks over 6 storeys (>18m) in height an EWS1 form is not automatically required. 2018 building regulations require that any cladding cannot be combustible and we will add a special condition to the mortgage offer which will advise that the conveyancer must obtain confirmation that the building complies with 2018 building regulations or alternatively they can obtain an EWS1 form. It will also prompt the same communication to the customer around the EWS1 form if applicable. It could also be requested for any building below this height where the surveyor has specific concerns.
A 'final inspection' indicator will show as required on the mortgage offer, to ensure the mortgage cannot complete until the conveyancer confirms either building regulations or an EWS1 form has been received. Once our surveying providers have confirmed they are satisfied with the cladding confirmation then the final inspection will be marked as completed.
The use of the EWS1 form is an industry-wide agreed process to ensure a fire safety assessment has been conducted by a suitably qualified and competent professional and delivers assurance for lenders, surveyors, and customers.