Real Estate

NEW initiative unlocks thousands of landlords from Grenfell risk rules nightmare – LandlordZONE

Thousands of landlords should be able to sell properties locked up by Grenfell risk rules following the launch of a government insurance scheme.

The Government Actuary Department (GAD) has developed the professional indemnity insurance scheme as many qualified professionals cannot currently get professional indemnity insurance to cover their External Wall System (EWS1) assessments.

These assessments are carried out to decide whether remediation work such as cladding removal is needed on a high-rise building after mortgage lenders became reluctant to lend to buyers of high-rise flats following the Grenfell fire.

GAD has supported the Department of Levelling Up, Housing and Communities to design and work out pricing of the scheme, which project lead Jacqui Draper (pictured) says was a complex and significant piece of work.

“We have estimated that claim costs will be £100 million, although there is no theoretical cap on the total size of claims that could be made,” she adds.

“We also advised DLUHC on the level of premiums needed to recoup the expected claims and operating costs.”

September launch

The scheme is set to launch in September and the government has teamed up with a selected insurer which will be administering the policies to qualified professionals.

Earlier this year, the government announced that leaseholders would not have to pay for remediation work on properties between 11m-18m high, making developers responsible for funding works. After initially saying ‘qualifying leaseholders’ would not include landlords, it included ‘accidental’ landlords with no more than three properties in total.

Source
NEW initiative unlocks thousands of landlords from Grenfell risk rules nightmare – LandlordZONE is written by Nigel Lewis for www.landlordzone.co.uk

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