Here are the latest updates from Barclays. These products are available via our direct to lender mortgage club which offers you payment on completion and a lot more besides!
Important Cladding Update
We are pleased to announce that from today, Monday 9th January 2023, our policy has been updated to reflect the Building Safety Act of 2022. The act provides protection in relation to the costs of replacing external combustible material, for existing leaseholders and prospective buyers of properties with external combustible cladding or attachments, where there is a qualifying lease or planned remediation in place by a recognised body.
To support applications for impacted properties that need remediation we will require one of the following to be provided to us with your client’s mortgage application.
- Written confirmation of intention to complete the works from a developer who has signed a contract with the government
- A Building Safety Act 2022 Government Leaseholder Deed of Certificate Form accompanied by a Building Safety Act 2022 Landlords Certificate
- Written confirmation from a housing association confirming they are completing the remediation.
- Written confirmation from DLUHC confirming the property is approved for funding to remediate.
Where your client will have a financial liability to contribute towards remediation, you will be required to calculate the maximum annual or monthly liability and input this as a service charge within the financial commitments section of the mortgage application, to ensure affordability is met.
It’s important to note that a financial liability won’t be passed to the leaseholder for developer remediated properties. This will also be the case for some properties where written confirmation is provided by a housing association or DLUHC. Please refer to the documentation provided by your client as this should clearly stipulate whether a financial liability applies.