Agents warned over upfront information for flats facing remediation
Propertymark says estate agents dealing with property where cladding and other work is current or planned must ensure the particulars are recorded.
An amendment to the Mortgage Lenders’ Handbook for Conveyancers now states that upfront information about remediation work under the Building Safety Act 2022 must be requested for transactions involving leasehold flats in England.
And trade body Propertymark warns that estate agents dealing with this type of property where remediation work is current or planned or has previously taken place (main picture) must ensure the particulars are recorded and shared with stakeholders.
Upfront information
The amendments have been made to Part 1 of the Handbook regarding Building Safety.
It now states that when the property being mortgaged is a leasehold flat, lenders must request the following from the seller’s conveyancer: Confirmation as to whether the building has been or will be remediated under the Building Safety Act 2022; Copies of any Landlord’s Certificates, signed by the Landlord in the form set out in the Building Safety (Leaseholder Protections) (England) Regulations 2022; Copies of any executed Leaseholder Deed of Certificate (in the form set out in the Building Safety (Leaseholder Protections) (England) Regulations 2022) and confirmation that they have been submitted by the relevant leaseholder to the landlord.
FALL-THROUGHS
Propertymark says: “Comprehensive upfront information benefits everyone involved in property transactions by simplifying and streamlining processes, cutting down the time it takes to complete a sale and reducing late-stage fall-throughs.
“For high-risk buildings – in particular leasehold flats affected by unsafe cladding – specific details are needed for lenders to consider providing a mortgage.
“This will include evidence that buildings will be self-remediated by developers, covered by a recognised UK Government scheme or by leaseholder protections contained in the Building Safety Act which can be demonstrated by a Leaseholder Deed of Certificate.”
Propertymark’s PIQ includes all of the relevant building safety information which a conveyancer will need and helps to identify missing information or documentation at the very start of the process.
Should be extended to include any planned works to the block for which the leaseholder will have to make a contribution.