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).
This follows the implementation of commitments made by mortgage lenders in an New guidance published by RICS will help valuers value properties with cladding and enable mortgage lending on affected properties.
With the RICS guidance now in place, from Monday 9 January 2023 lenders will be able to consider mortgage applications on properties in buildings in England of 11m and over in height. Lenders will need evidence that buildings will be self-remediated by developers or covered by a recognised government scheme or by leaseholder protections contained in the Building Safety Act, as evidenced by a Leaseholder Deed of Certificate. (All mortgage lending is subject to regulatory requirements and individual firms’ lending policies).
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