At the end of December 2019 ARMA, The Association of Residential Managing Agents, provided an update regarding recent confusion around cladding.
Back, in December 2018 the government issued an Advice Note (AN14) for anyone responsible for, or advising on fire safety of external wall cladding, such as that found in Grenfell. Although only an Advice Note this document caused issues in the sale and remortgage of leasehold flats in affected buildings. This led to some valuers returning a £0 value on flats, thereby holding up sales.
The £0 value put on some homes doesn’t necessarily mean that a property is considered worthless – it is, however, a technique used by valuers to place a hold on a valuation pending further information.
Since then ARMA has been active on the matter, taking the issue up with the Ministry for Housing, Communities and Local Government.
Dr Nigel Glen, CEO of ARMA, said: “The unfortunate and unintended consequence of Advice Note 14 has meant that people trying to sell or re-mortgage their flats are finding that it is impossible to do so. This obviously causes a great deal of heartache and anguish to people.”
“There is a huge cross-industry effort in collaboration with the Government to unblock the valuations process.”
Speaking at the start of the year James Tarr, Head of Leasehold at Andrews Property Group, said “We’re glad to see that there has been recent progress for homeowners looking to sell or remortage their property that was initially affected by this situation.
If anyone is unsure about their buildings cladding or would like more information on the situation then please contact the Leasehold team who will be more than happy to advise on the matter.”
The Leasehold Team can be contacted on 0117 405 4611.