
Policy Change for HSBC UK Bank Solicitor Panel
Change Date: 02/10/2023
Association: UK Finance
Jurisdiction: England and Wales
Index: v.2023 No.1050
Policy changes relevant to
HSBC UK Bank
Solicitor Panel
Updated |
|
02/10/2023 |
5.14.17b- Does the lender have any specific instructions about building safety? |
a) You must inform us before completion if the current owner of the property is a non-qualifying leaseholder and send us confirmation of monies known to be payable by the leaseholders for remediation works as this may result in our having to withdraw or change the mortgage offer. b) You must c) d) Where the building will be self-remediated by a developer, you must request provision of evidence confirming the commitment by the developer to fund the remediation works in full which, might take the form of: (i) a letter from the developer; or (ii) a certified copy of a developer remediation contract. e) You must ensure that the borrower understands the extent of any financial contribution they will be required to make towards the cost of remediation, the remediation status of the building and the impact of any remediation timescales. Where the building is of a construction type (i.e. traditional masonry) that there are no fire risks identified which relate to the provisions of the Building Safety Act 2022 or i. an EWS1 certificate is provided with an A1, A2 or B1 rating confirming no remediation works are required; or ii. a Fire Risk Appraisal of External Walls in accordance with PAS 9980 (FRAEW) confirms that no remediation is required Subject to 5.14.17 a. above, we do not require that you refer this information to us and the requirements of the above sections a) - d) do not apply. |
England & Wales: Part 2 reference and proposed
wording: 5.14.17b We have requirements for properties that have external wall systems (often generically termed cladding) that require remediation under the Building Safety Act 2022 a) You must inform us before completion if the current owner of the property is a non-qualifying leaseholder and send us confirmation of monies known to be payable by the leaseholders for remediation works as this may result in our having to withdraw or change the mortgage offer. b) You must check the Landlord’s Certificate has been completed correctly and properly executed and where possible, that the information it contains is correct. c) If no Landlords Certificate is available, then you must satisfy yourselves that the leaseholder has followed the procedure set out in the legislation for providing the Leaseholder Deed of Certificate and that the landlord has not complied with the timeframes for providing a Landlord’s certificate and is not entitled to recover the costs of remediation. d) Where the building will be self-remediated by a developer, you must request provision of evidence confirming the commitment by the developer to fund the remediation works in full which, might take the form of: (i) a letter from the developer; or (ii) a certified copy of a developer remediation contract. e) You must ensure that the borrower understands the extent of any financial contribution they will be required to make towards the cost of remediation, the remediation status of the building and the impact of any remediation timescales. Where the building is of a construction type (i.e. traditional masonry) that there are no fire risks identified which relate to the provisions of the Building Safety Act 2022 or i. an EWS1 certificate is provided with an A1, A2 or B1 rating confirming no remediation works are required; or ii. a Fire Risk Appraisal of External Walls in accordance with PAS 9980 (FRAEW) confirms that no remediation is required Subject to 5.14.17 a. above, we do not require that you refer this information to us and the requirements of the above sections a) - d) do not apply. |