Skipton Sets New BSA Requirements

Skipton Building Society have made a number of recent changes to their P2 Handbook instructions.

In answer to the question ‘Does the lender have any specific instructions about building safety?’ the new instructions are as follows:

‘Our Offer has been made on the basis that the building is of a construction type (i.e. traditional masonry) such that there are no fire risks identified which relate to the provisions of the Building Safety Act 2022,

Or,

i. An EWS1 certificate has been 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) has confirmed that no remediation is required; or
iii. An EWS1 certificate has been provided with an A3 or B2 rating but our understanding is that there is a costed and funded* remediation scheme and plan in place (*with funding from the government or from the owner/developer)

However, if you are made aware at any stage during the conveyancing process that:

i. the valuer’s assumptions regarding the security property’s/the building’s status in respect of remediation works under the Building Safety Act 2022 are incorrect; and/or,
ii. where you receive any other contrary information or documentation to that which was provided to you with the Offer regarding Building Safety; and/or
iii. the security property has non-qualifying leaseholder status under the Building Safety Act 2022

you must:

1. report this to us immediately for consideration and include in your report confirmation whether the security property has qualifying or non-qualifying leaseholder protection status (if iii. above applies, you must provide the Leaseholder Deed of Certificate with your report).
2. make this report to us before submission of your Certificate of Title and before exchange of contracts (as this may affect our decision to lend and we may have to withdraw or change the mortgage offer).
3. not complete the mortgage until you have received our further written instructions.

You are also required to give full and comprehensive advice to the Borrower/s regarding obligations, specifically any financial obligations, that they may have under the Building Safety Act 2022 and the impact this may have on their ownership (including use and enjoyment) of the security property – please be mindful of requirements under Part 4.4 of the Handbook. Full details of the advice given, and subsequent confirmation of understanding of the advice by the Borrower/s must be kept with your conveyancing file.

If no Landlord’s Certificate is available, you must obtain verification that the leaseholder has complied with the procedures under the Building Safety Act 2022 for the provision of the Leaseholder Deed of Certificate and the landlord has not complied with the timeframes for providing a Landlord’s Certificate and the landlord is not entitled to recover remediation costs.

Where the leaseholder (as of 14th February 2022) has noted in the Leaseholder Deed of Certificate that the dwelling was theirs or another’s only or principal home, you must verify this information (as far as you are able) by checking the accompanying evidence documents to the Leaseholder Deed of Certificate and query any discrepancies/request further documentation, if required, to verify.

You are required to ensure that you have evidence of the last sale of the security property prior to 14th February 2022, including date and price even if these are not provided with the Leaseholder Deed of Certificate you receive (please note that where this information is not available on HMLR, you will not be required to satisfy this check).’