Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, Natwest and Santander have supported the statement issued by the Royal Institution of Chartered Surveyors (RICS) which clarified the current lending position.
Banks will now lend on remediated buildings if the mortgage application meets individual lenders’ policy and regulatory requirements or there is evidence of a qualifying lease certificate.
The recognised schemes include the Developer Remediation Contracts, which is available for buildings 11 metres and taller, the Medium Rise Scheme which is for buildings between 11 and 18 metres, and the Building Safety Fund which is for properties 18 metres and taller.
RICS said the Building Safety Act “played a critical role in unlocking the lending market regarding properties with cladding” and said this would “create a vehicle” to allow valuations on all identified blocks of flats.
The trade body added: “A transparent approach to valuing properties with building safety defects is instrumental in underpinning the confidence of lenders and purchasers. RICS will continue to safeguard housing market stability for buildings 11 metres and above, and support valuers to take a consistent valuation approach, to help facilitate lending.
“This will be reflected in forthcoming RICS guidance which ensures valuers take a consistent approach to advising their lender clients.”
The Building Societies Association and UK Finance also endorsed the statement.
