Unsafe cladding still affects up to 12,000 blocks and may cost £22 billion to fix. Mortgage lenders often refuse loans without an EWS1 sign-off, service charges are climbing, and many leaseholders face five-figure remediation bills. These pressures turn thousands of units into hard to sell flats that linger for months. Cash-purchase firms step in because they do not depend on mortgage approval, so they can complete even if a building has high-risk cladding or missing paperwork. They buy at a discount, but they give speed, certainty and relief from future costs.
Contents
Why Cladding Issues Create Hard to Sell Flats
Unsafe Materials and Remedial Costs
Government data shows work has not yet started on more than half of the 5,000 high-rise sites already logged for repair, while a further 7,000 buildings over 11 m still need full checks. The Public Accounts Committee warns final costs could reach £22.4 billion.
Mortgage and Valuation Barriers
Between January and March 2024, lenders demanded an EWS1 or similar form for 46 % of valuations on buildings at least seven storeys high; even mid-rise blocks faced a 23 % rate. Without that form, mainstream banks often decline lending, which leaves sellers with hard to sell flats that most buyers cannot finance.
Service-Charge Inflation
Average service charges for leasehold flats rose 11 % to £2,300 a year in 2024, adding fresh strain to household budgets and deterring buyers. The rising insurance costs linked to fire risk widen the price gap between houses and flats.
Falling Values and Slow Sales
Flat prices have lagged behind houses for nearly a decade. Sales volumes for flats fell by up to one-third between 2021 and 2024, leaving owners stuck. Cladding concerns stall even agreed deals once survey results surface.
These factors combine to create a pool of hard to sell flats where owners face rising bills yet cannot move.
The Building Safety Act: Help and Limits
The Building Safety Act 2022 blocks freeholders from passing most cladding costs to qualifying leaseholders and caps non-cladding defects at £15,000 in London and £10,000 elsewhere. But progress is slow and does not solve trapped equity for sellers who still need EWS1 clearance. The gap leaves many properties classed as hard to sell flats despite legal reforms.
Why Cash Buyers Still Buy Hard to Sell Flats
No Mortgage Chain
Cash buying companies use their own funds. They do not wait for lender sign-off, so an absent or adverse EWS1 does not stop the deal. This alone lets them target hard to sell flats that otherwise attract few offers.
Faster Completions
Some cash buyers exchange and complete inside seven days because they skip the mortgage valuation stage. Speed matters if service-charge arrears or fire-watch bills keep climbing month by month.
Certainty in the Face of Future Costs
Even with the Act, unexpected works can arise. By selling, owners cap their exposure. Cash buyers price risk into the offer, but they take on future unknowns.
Simplified Legal Path
Reputable companies pay the seller’s legal fees and use streamlined contracts. That reduces stress for owners already drained by disputes with managing agents or freeholders.
Step-by-Step Guide to Selling a Hard to Sell Flat for Cash
- Collect Key Papers
Gather lease, service-charge statements, any fire-risk assessments and insurance notes. Cash buyers will need them for due diligence. - Request Multiple Quotes
Contact at least three cash-buyer companies. Check Companies House filings and reviews before you share details. - Site Visit or Virtual Tour
A buyer will inspect the block, confirm cladding materials and note any interim measures. - Receive the Offer
The company bases its price on local sales data minus remedial risk and resale delay. Make sure the offer is “net” of fees. - Legal Pack and Exchange
Once you accept, solicitors handle ID checks and leasehold enquiries. Well-organised cases can exchange inside five working days. - Completion and Funds
Money arrives by bank transfer on the chosen day. You hand over the keys, and the buyer takes responsibility for future fire-safety costs.
By following these steps, owners convert hard to sell flats into liquid funds and avoid further exposure.
Key Takeaways
- Unsafe cladding, uncertain remedial costs and rising service charges turn many leasehold units into hard to sell flats.
- Lenders demand EWS1 forms for up to half of high-rise valuations, blocking mortgage buyers.
- Cash buyers bypass mortgage rules and close deals fast, even if a block still needs safety works.
- The Building Safety Act offers cost caps but does not fix slow sales or equity lock-in.
- Selling to a cash buying company means selling at a discount, but it ends service-charge rises and looming repair bills.
FAQs
Q1 – Does the Building Safety Act mean I can wait for a higher price? The Act limits what freeholders can charge you, but many buyers still want a clear EWS1. Until remediation finishes, your flat may stay in the hard to sell flats bracket.
Q2 – Will every cash buyer take a flat with a B2 rating? Most specialist buyers will consider it, but they adjust the price for risk and the wait time to fix the block. Always compare offers.
Q3 – How do I check a cash buyer’s credibility? Look at Companies House records, client testimonials and proof of funds. Avoid firms that ask for upfront fees.
Q4 – What costs do I still pay after the sale? Once completion happens, the buyer covers future cladding bills and safety levies. You may still owe any arrears agreed at the exchange.
Q5 – Can I sell if my managing agent is in dispute with the leaseholders? Yes, but provide all correspondence. Cash buyers factor ongoing disputes into price and timescale. They specialise in hard to sell flats with management issues.
Related articles
Selling Problem Properties: Why Cash Buyers Are the Solution for Difficult Homes