By Lylieth Williams - Senior Paralegal

 

Since the Grenfell Tower tragedy in June 2017, it is estimated that there are still 2,000 buildings cladded with dangerous materials (HCLG). Focus was initially based on the removal of aluminium composite material (ACM) from buildings over 18 metres. Over time, focus has broadened to take in other types of combustible cladding.

New regulations and procedures have been introduced that aim to assess the fire safety in high-rise buildings. The EWS1 Certificate is one of the main initiatives that impacts a lot of properties in terms of valuations and mortgages approval, and may cause delays in a sale transaction. Whilst the assessment process is supported by the governments, the EWS1 Certificate is not a statutory requirement; however a Lender may refuse a Mortgage Application where a certificate cannot be provided.

These new regulations initially applied to all buildings over 18 metres (5-6 storeys high). However, changes in Government advice introduced in January 2020 mean that all buildings of any height with a wall system may need to be risk assessed. Not all blocks need an EWS1 form, only those with some form of combustible cladding or combustible material on balconies. RICS advises that some lower buildings may be in scope if there are specific concerns about combustible materials/balconies which represent “a clear and obvious danger to life safety”.


Certificate Criteria

OPTION A:  Where external wall materials are unlikely to support combustion:

•             A1 - There are no attachments whose construction includes significant quantities of combustible:

•             A2 - There is an appropriate risk assessment of the attachments confirming that no remedial works are required

•             A3 – Where neither of the above two options apply, there may be potential costs of remedial works to attachments


OPTION B:  Where combustible materials are present in external wall:

•             B1 - I have concluded that in my view the fire risk (Note 8) is sufficiently low that no remedial works are required

•             B2 - I have concluded that an adequate standard of safety is not achieved, and I have identified to the client organisation the remedial and interim measures required (documented separately).


If Options A1, A2 or B1 are selected, then no remedial works are required. In this case, the value of the property is not going to be affected and the mortgage process can continue. If remedial works are identified as being necessary (A3 or B2), then the mortgage lender may choose to halt the process pending the works completion, or at the very least until a specification is drawn up.

Additionally, if an external wall system requires remedial work then it is expected that the valuer take this into consideration in their valuation. A valuation will only be possible if there is clarity on cost of the work and a timeline for works to be completed. Lenders are unlikely to lend until remedial work has been completed, but some may choose to do so with retentions and the like, based on their own risk appetite.

A fully qualified member of a relevant professional body within the construction industry must complete the certificate. Those completing the test must have sufficient expertise to identify the relevant materials within the external wall cladding and attachments, including whether fire resisting cavity barriers and fire stopping have been installed correctly (e.g. Qualified RICS Surveyor, Facade Engineer etc.). Those responsible for commissioning the Certificate and carrying out any subsequent work are:

•             Freeholder

•             Management Company

•             Managing Agent.

The process usually takes 6-8 weeks, however if combustible materials are found to be present, this must then be escalated to a Chartered Fire Engineer, resulting in further delay. There is currently a lack of qualified professionals available to carry out assessments and complete EWS1 forms. The 21st November announcement included Government funding of almost £700,000 “to train more assessors, speeding up the valuation process for homeowners in cases where an EWS1 form is required.” The training will be delivered by RICS from January 2021 and is expected to train 2,000 additional assessors within six months. 

The Government is also: “pressing lenders to accept other forms of evidence on building safety to support their valuations. The EWS1 process should only be used where there is clear need, and where no reasonable assurances or regulatory evidence exists to support valuations.”

As a result of delays in obtaining EWS1 reports, due to insurer requirement, and the fearfulness of occupant, many Flat Owners/Occupants have now resorted to the use of the ‘Walking Watch’ in which a warden is engaged to continually patrols the building (interior and exterior) in order to respond to a fire, assist in calling the fire service and assist with the evacuation of occupants of the building.

If you would like to discuss this new guidance further, please contact me, Lylieth Williams, at Lylieth.Williams@ascent.co.uk.