30 Nov Need to Sell Your Flat Without an EWS1 Report?
Looking to Sell Your Flat Without an EWS1 Certificate?
The outside of a building is called the external wall system (EWS) which is made up of cladding, insulation, fire break systems etc. Following the Grenfell Tower fire in 2017, the safety of the external wall system of other high rise residential buildings became a serious concern. As such, in December 2019, the Royal Institution of Chartered Surveyors (RICS) with the support of UK Finance and the Building Societies Association introduced EWS1 forms.
What is the EWS1 form?
EWS1 forms provide the fire risk rating of residential buildings and are required for all residential buildings which are over 18m in height (which is typically six storeys and above). They have to be obtained by the building owner (the freeholder) and the assessment must be carried out by an expert with the relevant training, without an EWS1 you will struggle to sell the flat.
What is the purpose of an EWS1 assessment?
EWS1 assessments are a standardised process devised to determine whether a residential building is compliant with the government fire safety regulations. They came into effect in order to provide security to mortgage lenders to mortgage/remortgage flats within a residential building. If the block of flats doesn’t comply to fire regulations a buyer won’t be able to obtain a mortgage and therefore you will only be able to sell the flat without an EWS1 to a cash buyer.
Prior to this, if there were concerns regarding the external wall system of a residential building, surveyors would value the building as having zero value. Whilst this does not actually mean the building has no value, this is flagged to the mortgage lenders, which would impact their willingness to lend. This is the reason why a surveyor with the relevant expertise is required to carry out an in-depth assessment.
What does the process involve?
A qualified expert will conduct a thorough physical inspection of the building’s external wall system. This includes examining the construction documents to understand the materials and methods used. They will also remove parts of the external wall system to test the fire performance of the materials. The testing will cover the cladding and other elements within the entire external wall system, including the insulation between the cladding panels and the walls, as well as the fire-stopping measures. Additionally, they will assess whether fire-resisting cavity barriers and fire-stopping have been correctly installed. Once completed, their report must be approved by a registered fire engineer. Obtaining an EWS1 form typically takes between 6 and 12 months.
What are the different ratings of an EWS1 assessment?
After the EWS assessment, a building will receive one of five possible ratings. If the fire risk rating is A1, A2, or B1, the building is considered safe, and a mortgage should be granted. However, if the building is rated B2 or A3, remediation work is necessary to ensure compliance with fire safety standards. Without these works, banks will be unwilling to lend on the property.
What are the problems with EWS1 forms?/ What does this mean for leaseholders?
There are two primary issues for leaseholders of residential buildings requiring an EWS1 form. First, in addition to their current service charge, leaseholders collectively bear the cost of the assessment, which typically runs around £7000. This cost can vary based on the building size, the amount of testing required, and the company performing the assessment. If the cladding poses a significant risk, immediate action, such as employing a 24-hour security guard (a ‘waking watch’), may be necessary, adding to the leaseholders’ expenses.
Secondly, there is a shortage of qualified professionals to conduct EWS1 assessments. Since banks will not lend on flats in buildings requiring an EWS1 form, people are unable to move. Despite recent government grants to train more experts, a considerable backlog remains. Consequently, some housing associations estimate that it could take several years to complete all EWS1 assessments and the subsequent remediation work.
Things to note
An EWS1 form is not a life safety certificate and is valid for only five years. It may need reassessment if substantial changes occur to the building’s external wall. Building owners should understand that EWS1 forms should never be used to determine a building’s overall fire risk, as they do not consider other fire safety measures and risks within the building. While mortgage lenders require EWS1 forms for mortgaging and remortgaging flats in high-rise residential buildings, they are not a legal requirement.