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Lloyds Banking Group updates cladding policy

  • 19/12/2022
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Lloyds Banking Group updates cladding policy
Lloyds Banking Group has updated its guidance so it will no longer require an EWS1 form to progress applications for properties in England that are five stories or higher.

This is a change from the previous criteria which stated that EWS1 forms would be required and if one wasn’t held, it would be required if RICS guidance had mandated one, the cladding status was unknown or if there was no evidence of developer funded or government scheme funded remediation commitments was held.

The Building Safety Act 2022 means that the route to funding for remediation if these properties are five stories or over, is locked in legislation, which means that most leaseholders are protected from cladding remediation costs.

RICS has since given updated guidance to surveyors and valuers to use when assessing the value for lending purposes on these buildings.

The UK Finance lender handbook also means that conveyancers have been updated on the need for information, such as leaseholder and landlord certificates, that are needed from the sellers’ conveyancer to give the buyer as much relevant information as possible.

According to Criteria Brain, two lenders say they don’t require an EWS1 form for properties with combustible cladding or materials on balconies.

The majority, nearly 70 lenders, require an EWS1 form for certain applications but there is variation between lenders.

Jas Singh, CEO of consumer lending at Lloyds Banking Group, said: “We have worked closely with housebuilders and RICS to find a solution for homeowners, so we warmly welcome the updated guidance for valuers on homes with external cladding.

“While we have continued to lend on properties with cladding where possible, this move will really simplify things for those buying homes in properties five storeys or above 11 metres. We hope this will continue to open up the market for those in affected properties, bringing peace of mind to homeowners.”

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