Cladding problem, cost exemption certificate etc

[catman]

Hi all, I have a flat that is caught up in the cladding problem. I recently applied to my Council for the cost exemption certificate, which is a government initiative to provide an assurance to lenders that their client will not be liable for any costs.

I also saw that advice has been given to Surveyors regarding properties with cladding, and that six lenders have signed up to say that they will now consider lending on affected properties.

I was wondering whether anyone has information regarding whether this will make much difference to the mortgage market or whether the property will be significantly down valued?

Thanks in advance!

[Sarnie]

Lenders have indeed this week altered their stance on cladded properties.

This will help everyone that has been marooned with a lender or unable to sell their property......buyers now have options. Six lenders is still a very small pool of lenders to expect buyers to use so I'd expect positive signs for cladded properties this year but not a huge upturn until that pool is bigger......but at least owners will be able to see some light at the end of the tunnel now.....

[catman]

Hi Sarnie, thanks for your reply. Do you think that they will lend at the true value of the property though, or will there be a hidden catch of "we'll lend on your property, but at a lower value?"

Thanks.

[Sarnie]

catman said:

Hi Sarnie, thanks for your reply. Do you think that they will lend at the true value of the property though, or will there be a hidden catch of "we'll lend on your property, but at a lower value?"

Thanks.

I would still expect there to be an issue with valuation until the whole mortgage market takes the same stance or the problem is permanently resolved.........until then, I'd expect down valuations, which whilst aren't ideal, it's better than a straight decline or having to jump through EWS1 hoops.....

[catman]

Just as I expected then. A small step in the right direction, but not a complete solution.

Thanks.