Nick Morrey: Implementation of RICS Coating Guidelines is in Evaluators’ Hands
According to Nick Morrey, product technical director at John Charcol, the evaluators will decide on the implementation of the RICS coating guidelines.
On March 8, the Royal Institution of Chartered Surveyors (RICS) revealed new directions relating to the cladding.
The guidelines clarify the types of properties that will and will not require additional inspections due to fire safety concerns.
Coating costs for tenants could reach £ 11.43 billion
Morrey explained that it is not the lenders who follow the advice, but rather the appraisers, most of whom are themselves RICS members.
Morrey said: “If RICS, working with the government, makes any changes, then the assessors are expected to act on those changes and make their recommendations to lenders accordingly.”
The appraisers’ decision is crucial for lenders because they are the “eyes” of lenders, Morrey said.
He added: “Appraisers are professionally qualified people educated by the lender, their opinion is all that matters when it comes to the suitability of a property for loan purposes.”
Following RICS recommendations, Morrey hopes to see many tenants become able to sell their properties, as well as remortgage.
Morrey noted that those who live in apartments, in blocks of up to four stories and less than 18 meters that have been deemed to need an EWS1 form, should no longer have to provide one under the new guidelines. .
This would result in the release of many mortgage prisoners.
Morrey said: “What is naturally missing is a provision for those who live in leasehold properties that need work, but are waiting for government funding or repair work to actually begin.
“Since until the work is actually done the risk to life remains greater than normal, there is not much to do, but for many, the work should be done within six months, roughly the time needed. take to swap and finish anyway. “
As there is a danger to life associated with the coating, Morrey stressed that while resolution is needed to free the mortgage prisoners, it must be taken with care in order to avoid another tragedy like Grenfell.
He added: “This new direction will hopefully allow RICS members to be even more convinced that saying ‘yes’ is the right thing in more cases, potentially allowing thousands of mortgage ‘prisoners’ to come to terms with it. move on and many first time buyers own a safe property for themselves.