Achieving full homeownership is a significant milestone, often perceived as a straightforward process when a buyer possesses a strong financial profile. However, as this case study illustrates, even seemingly uncomplicated mortgage applications can present unexpected hurdles. This article delves into the journey of a client in London who sought to buy out the remaining share of their shared ownership flat, only to be met with a complex challenge related to the EWS1 (External Wall System) certification. It highlights how adaptability, expert guidance, and a strategic approach were pivotal in navigating this unforeseen obstacle and ultimately securing full ownership.
Background
The client owned 30% of a shared ownership flat in London and was eager to buy out the remaining share to achieve full ownership. Their existing mortgage was on a variable rate, prompting them to seek a fixed-rate alternative for financial stability. With a strong financial profile—stable employment, no dependents, and a clean credit history—affordability checks were swiftly passed, making the mortgage process appear straightforward.
The Challenge
During the valuation process with the initial lender, an unexpected hurdle emerged concerning the EWS1 (External Wall System) form. The document had been issued by Tri Fire Ltd, an organisation currently facing scrutiny due to the suspension of one of its engineers. As a result, most lenders were rejecting certificates issued by them.Â
Although the building’s management company provided a letter of comfort stating that they were in the process of commissioning new certificates with another firm, the first lender insisted on receiving a newly issued EWS1 before proceeding with the mortgage offer. This created an obstacle that threatened to delay the client’s plans.
The Solution
The decision was made to approach a different lender with a more flexible stance on EWS1 documents. The new lender was willing to proceed, provided there were clear steps in place to rectify the certification issue. This lender understood the client’s strong financial position and acknowledged the management company’s commitment to securing updated documentation.
Outcome
With the new lender’s cooperation, the client successfully secured financing, enabling them to buy out the shared ownership and fully own their London apartment. Despite the initial setback, strategic lender selection and proactive problem-solving ensured a successful resolution, demonstrating the importance of adaptability and expert guidance in navigating mortgage complexities.