Group seeking to help leaseholders by encouraging consistentcy in valuation
The RICS is seeking views on draft guidance drawn up to help lenders value blocks of flats with cladding in the aftermath of the Grenfell Tower fire.
Loss of confidence in the fire safety of such properties has severely impacted leaseholders, with many unable to sell due to the lack of mortgage finance.
More than five years on from the deadly west London fire, the latest data shows there are nearly 10,000 properties in the UK that still need remediation.
The professional body hopes its new advice will address this issue by helping valuers take a consistent and transparent approach in undertaking mortgage valuations and take agreed cladding remediation funding and timelines in consideration when valuing blocks of flat.
The advice was drawn up by a working group comprised of valuers, lending bodies, conveyancers, fire engineers with input from housing department officials.
RICS has put the draft out for consultation, where industry, leaseholder and homebuyer groups will offer their views, after which the RICS Standards & Regulation board will decide on its implementation.
In March, the body updated its External Wall Systems form (EWS1) to reflect a more “proportionate” approach to fire safety checks and get the market moving again.
RICS anticipates that reliance on EWS1 will reduce as the government’s Fire Safety Act is implemented, with risk assessments falling in line with the normal FRA process.
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