Senior MP asks lease owner for answer

Congressman Clive Betts wrote to the government to ask why. New guidance Those designed to help about 500,000 lease owners sell their apartments or homes are not being followed.

It was published by the Royal Institution of Chartered Surveyors (RICS). March..

This is supposed to help surveyors decide which tower blocks need additional fire protection checks.

However, while the mortgage provider was consulted for guidance, Moneybox noticed that some lenders were ignoring it.

An additional check is called Exterior Wall System Form or EWS1 Grenfell Tower Fire 72 people died.

This form is important to buyers, sellers, and whether an apartment can be safely bought, sold, or rented, depending on whether there are flammable coverings, vertically stacked balconies, or other issues. Best of all, it is supposed to provide a guarantee to the mortgage provider.

But moneybox listener Ji Shen, who is preparing for retirement, is offering those problem-free apartments for sale.

He says three mortgage lenders have turned down future buyers, even though Jie’s building does not have an EWS1 form and the RICS guidance does not require an EWS1 form.

“I feel trapped in this situation. I can’t move my life forward. I’m just trapped in it and I don’t know how to solve it.” He says.

“I think mortgage lenders should follow the advice from RICS and not stick to the EWS1 form. [for a building] Those that do not contain flammable cladding.

“I don’t understand why mortgage providers claim this. It’s just bureaucracy.”

“The system is a complete failure”

For Jie and many others like him, another complex problem is that getting an EWS1 form isn’t his power, if at all.

He is a landlord and the decision to pay the investigation costs required to obtain the form is entirely up to the free owner who owns his building.

In the case of Jie, his building management company on behalf of the free owner quoted the RICS guidance that the building does not require the EWS1 form, and Jie was completely stuck.

However, Jie’s buyer was turned down by three mortgage companies because he didn’t have the EWS1 form. And it spins around, and Jie remains half-hearted.

It was the story of an incident like Gee that inspired Mr. Betts to take action.

Recognizing that EWS1 is an “industry-led process,” Betts wrote to Secretary of State Robert Jenrick and asked two important questions on behalf of the Commission.

  • How Government Helps Implement New Guidance from RICS

  • What the government is trying to do if mortgage lenders continue to require EWS1 forms for buildings that do not meet RICS standards.

He is seeking an answer by the end of May.

Betts also showed to people in the same position as Jie that the RICS guidance does not require EWS1 for the tower block, but if the lender does require EWS1, he will tell the committee “hclgcom @ parliament”. .uk “.

After hearing about Jie, Betts told Money Box:

“Therefore, if the system does not reassure the lender to lend to a building that the system says does not require a certificate, then the system is a complete failure and both RICS and the lender should be taken up. Don’t leave a person in a house that can’t be sold or repaid. “

UK Finance, which represents about 300 banks, building-and-loans and mortgage companies, says it supports the guidance, but whether or not to implement it is based on the individual lender’s own risk tolerance.

The lender also instructed the evaluator to complete the real estate valuation, while telling the moneybox that it was the evaluator who decided whether the EWS1 form was needed.

The Ministry of Housing, Community and Local Government has told Money Box that it “encourages a wise and balanced approach to risk and encourages lenders to accept alternative guarantees.” Replace unsafe cladding in your home.

follow us Piggy bank And group On Twitter.

Posted on