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Hackney high-rise residents locked in by £0 valuation

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  • 17/09/2019
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Hackney Council in London has seen the leaseholder of a flat at its Kings Crescent Estate trapped by a £0 valuation owing to confusion over whether the internal insulation meets new building regulations.

 

The housing development of high-rise blocks comprises 490 new and refurbished one-, two- and three-bedroom flats that are a mixture of outright-owned, shared ownership and social rented properties.

The Hackney Gazzette highlighted the problem a with a report about valuation issues last week.

The Ministry of Housing, Communities and Local Government (MHCLG) issued new guidance on fire safety requirements for high-rise blocks in the aftermath of the Grenfell Tower tragedy.

However, the guidance has created confusion among building owners, lenders and the public.

 

Clear policy required

Greg Cunnington, director of lender relationships and new homes at broker Alexander Hall, said: “The key is awareness among leaseholders and freeholders and managing agents of blocks that may be affected, so that they get the wheels in motion to look into any works that may be required.

“We are seeing blocks where they are completely up-to-date, but the leaseholder is not aware which causes delays if the valuation comes back with queries.

“The more prepared all parties in the chain are, the smoother these transactions will become.

“The lender can play a role by having a very clear policy and communicating this with clarity, and by having a simplified process of supplying documents to the valuer, so that the client or freeholder can easily understand what’s required. Many lenders are already well down the line on this,” Cunnington added.

Mortgage Solutions reported last month on a host of brokers claiming that surveyors were valuing high-rise flats at £0.

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