Can I Sell My Flat With Cladding?

Miranda Sussman

If you’re trying to sell a flat with cladding, you may be feeling uncertain about the process and worried about the challenges involved. Since the Grenfell Tragedy in 2017, government legislation has come in that dramatically affects new build properties with cladding. Whilst it is now more difficult to sell flats with cladding, it’s certainly not impossible; understanding the facts and options you have available to you is the first step to a successful sale.

Whether you’re looking for a speedy sale or exploring your options before putting your home on the market, this guide is here to walk you through everything you need to know.

At Gaffsy, our team of cash buyers has ample experience advising homeowners in your situation and helping them complete fast, stress-free sales. But even if you decide to go a different route, this guide will equip you with a solid understanding of cladding and how it impacts the selling process.

What is Cladding?

Cladding refers to the material used on the exterior walls of a building. It can serve both functional and aesthetic purposes, providing homes with a cost-effective solution for insulation and weather protection. Common cladding types include: 

• Aluminium Composite Material​ – a type of cladding made up of two sheets of aluminium and most commonly used to protect buildings from the weather. The lightweight core of this type of cladding can be made of highly flammable materials, which can accelerate the spread of fire.

• High Pressure Laminate​ –  a form typically manufactured by binding together sheets of wood or paper fibre with a resin. Depending on the composition of the entire cladding system and the method of its installation, HPL can be safe on existing buildings.

• Metal Composite Material, in short MCM, is a type of cladding consisting of two metal cover sheets and a fire-rated core.

The vast majority of cladding is completely safe but, in recent years, there has been increased scrutiny around combustible types and how they may impact the fire safety of a building. This has resulted in the need for inspections, remediation work, and changes to how properties with cladding are marketed and sold.

As a flat owner, understanding what type of cladding is on your building and its current safety status is crucial when preparing to sell. We’ll cover more on this in the next section, but the key is to be upfront about the cladding details so potential buyers can make an informed decision.

Does cladding affect the value of my flat?

The short answer is – it depends; the impact of cladding on your flat’s value can vary significantly based on specific circumstances.

In general, properties with cladding that is deemed safe and compliant with current building regulations should not see a significant reduction in value compared to similar flats without cladding. Buyers could factor in the costs of regular inspection and maintenance, but the cladding itself may not be a major deterrent.

However, properties with problematic cladding that requires costly remediation work are a different story. Flats in buildings that have been deemed unsafe, or are awaiting expensive cladding replacements, will typically see a much larger drop in value. In some cases, the cost of the necessary repairs can make the property effectively unsellable on the open market.

The best way to understand the potential impact on your flat’s value is to get a professional assessment of the cladding situation. This will give you a clear picture of any safety concerns, estimated remediation costs, and how that is likely to affect the marketability and sale price of your home.

Can I sell my flat with cladding

Yes, you can still sell a flat with cladding, even if it requires remediation work. However, you’ll need to be upfront about the situation and prepared for a more challenging sales process.

Transparent communication with potential buyers is essential. You’ll need to provide detailed information about the cladding, including the type of material, any known safety issues, and the status of any planned or ongoing repair work. Buyers will want to understand the full scope and cost of the remediation, so being able to share any professional assessments or cost estimates is very helpful.

It’s also wise to be flexible on sales terms. Buyers may request things like a reduced purchase price, the ability to withhold a portion of the funds until cladding work is completed, or an extended completion timeline to allow for the remediation process. While these conditions may not be ideal, accommodating them can make your property a more attractive option.

The challenges of selling a flat with issues like problematic cladding should not be understated. The sales process is likely to take longer, and you may receive fewer offers from buyers willing to take on the associated risks and costs. However, with the right preparation, transparency, and willingness to negotiate, it is certainly possible to successfully sell your home. 

What is an EWS1 Form?

When selling a flat with cladding, one of the key documents you’ll need to provide is an EWS1 form, also known as an External Wall Fire Review. EWS1s were launched in December 2019 and provide a professional assessment of the external wall construction of a building, with a specific focus on fire safety.

It was created to help address concerns raised in 2017 around the use of combustible cladding materials on high-rise residential buildings. The form evaluates the fire risk posed by the external wall system and classifies the building into one of three categories:

• Category 1: The external wall system meets safety requirements and is unlikely to pose a significant fire risk.
• Category 2: Further investigative or remedial works are required to ensure the external wall system meets safety standards.
• Category 3: The external wall system does not meet safety requirements and presents a significant fire risk.

Obtaining a completed EWS1 form is now a crucial step in the sales process for any flat located in a building with external cladding. Buyers, mortgage lenders, and insurance providers will all require this documentation to assess the safety and value of the property.

How to get an EWS1 Form

The process of obtaining an EWS1 form for your flat will involve the following steps:

1. Identify the building’s freeholder or managing agent. They will be responsible for arranging the external wall fire review and completing the EWS1 form.
2. The freeholder/agent will hire a suitably qualified professional, such as a chartered fire engineer or surveyor, to inspect the building’s external walls and cladding. This may involve physical inspections, material testing, and review of construction documents.
3. Based on the inspection findings, the professional will complete the EWS1 form, categorising the external wall system and providing details on any identified fire risks or necessary remediation work.
4. The completed EWS1 form will then be provided to the building’s owners, who can share it with prospective buyers, mortgage lenders, and insurers as needed.

It’s important to note that obtaining an EWS1 form is not a quick or cheap process; the assessment and certification can take several months and cost thousands of pounds, depending on the size and complexity of the building. As the flat owner, you may need to work closely with your building’s management to ensure the EWS1 is secured in a timely manner when preparing to sell.

Ways to sell your flat with cladding

When it comes to selling a property with cladding, you have a few options to consider:

Traditional Estate Agent sale

This is the most common approach, where you list your property on the open market through an estate agent. However, as we’ve discussed, the presence of cladding can make this a lengthier and more challenging process. This is why many facing these situations look to selling their property without an estate agent

Part-Exchange

Some developers or property investors may be willing to offer a part-exchange deal, where they purchase your flat and you use the proceeds towards a new home they are selling. This can provide a more guaranteed sale, but the terms may not be as favourable as a direct cash sale.

Direct sale to a Cash Buyer

Working with a cash house buyer like Gaffsy is often the quickest and easiest way to sell a flat with cladding issues. These professional investors are willing to purchase properties as-is, without lengthy mortgage applications or extensive due diligence.

The key benefit of a cash sale is speed and certainty. Rather than waiting months for a traditional sale to complete, a cash buyer can often exchange and complete within a matter of weeks. They also eliminate the risk of a buyer pulling out due to cladding concerns, as they are prepared to take on that liability.

Additionally, cash buyers are typically able to offer a fair market value for your property, even with the cladding challenges. This allows you to move on without having to significantly discount your home.

How Gaffsy can help

As with any problem property, Gaffsy has the experience needed to offer with confidence. We will buy your property regardless of the cladding, condition of the building, sitting tenants or any other problems. 

Here’s what sets us apart: 

• We use our own funds so we can work at whatever time frame suits you. 
• We have lots of experience providing a fast sale service for flats with and without cladding.
• We guarantee to transact at our offer price. 
• You do not need an EWS1 Form when you sell your flat to Gaffsy.
• We will provide an offer on any property no matter what the condition is.
• We support you through every step of the process and handle all associated fees from lawyers and surveyors.