Commenting on the new guidance being developed by the RICS, the BSA and UK Finance said:

“The new guidance being developed by the Royal Institution of Chartered Surveyors (RICS) should help provide certainty in the market, especially for those buying and selling flats where building safety remediation works are planned. UK Finance and the Building Societies Association are working closely with the RICS and will respond to the consultation shortly.”  

Background:

The guidance is intended to allow surveyors to value properties with building safety issues that have remediation works planned. This means that lenders are able to accurately assess the value of a property which is essential when making lending decisions.

Lenders await the identification by DLUHC of buildings which require remediation.

Lenders await an update on the progress of DLUHC in achieving signed contracts from developers.

Lenders would like to see the building support fund opened to all leaseholders in affected properties, including buy-to-let landlords and those in low-rise blocks under 11 metres.

Borrowers living in flats affected by cladding issues whose mortgage deal comes to an end can switch to a new mortgage product with their existing lender, provided that they are not looking to borrow any more than their current mortgage and their repayments are up to date. This situation is covered under the voluntary industry product switching agreement reached in relation to mortgage prisoners.