Leaseholder Certificates – qualifying or non-qualifying?

Leaseholder Certificates – qualifying or non-qualifying?

10:04 AM, 19th December 2023, About 11 months ago 5

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Hello everyone, If I buy a high-rise property and fire remedial works are required is the status of the flat lease “qualifying or non-qualifying”, which is used to determine who pays for the works; down to the eligibility/status of the owner as at February 2022 or the present owner who acquired it in January 2023?

I appreciate that this is a very technical area so any expert opinion would be greatly appreciated.

Thank you

Colum

The Leasehold Advisory Service >> https://www.lease-advice.org/faq/what-is-a-qualifying-leaseholder-for-leaseholder-protections/

Leaseholder protections in the Building Safety Act 2022 came into force on 28 June 2022, meaning qualifying leaseholders will be protected from all costs related to the remediation of unsafe cladding systems.

You are a qualifying leaseholder if your property is in a building above 11 metres (or 5 storeys) and on 14 February 2022:

  • your property was your main home, meaning it was the home where you spent most of your time, or
  • you owned no more than 3 dwellings in the United Kingdom in total – dwellings outside of England will not be covered by or count towards leaseholder protections.

You are also a qualifying leaseholder if you have bought your property since 14 February 2022 but either of the two points above was true for the property on that date.

To help you understand your rights and whether you qualify for the protections, the Government has produced a Leaseholder Protections Checker and detailed guidance.  The Checker uses information from leaseholders to work out the maximum amount they may be charged under the new protections in the Building Safety Act.

Where protections apply, leaseholders need to complete and submit a leaseholder Deed of Certificate to their landlord who will confirm if they have to pay any money or not.”


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NewYorkie

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12:02 PM, 20th December 2023, About 11 months ago

You are also a qualifying leaseholder if you have bought your property since 14 February 2022 ...

Pete Lightowler

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12:39 PM, 20th December 2023, About 11 months ago

Reply to the comment left by NewYorkie at 20/12/2023 - 12:02
Yep, that's what it says in the text!
So to clarify, any landlord who owns 3 btl properties in the UK will be classed as a non qualifying leaseholder and will be hit with a massive bill? When will this become an issue?What is stopping such a landlord selling the flat?

NewYorkie

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16:44 PM, 20th December 2023, About 11 months ago

As things stand, yes, anyone with more than 3 properties will be clobbered if and when there are remedial works. As I understand it, the 11m is to the floor level of the 5th floor [not the roof].

The cut-off is 14/2/22. So, even if you sell now, you will still have owned 3 or more on that date. This is crap, because the law didn't come in until June 2022.

Tim Peters

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16:58 PM, 20th December 2023, About 11 months ago

That's the easy part.... Suppose Mr X owned 3 properties on 14/2/22. He decides to sell one and you buy it to live in as your only home.

If remedial Building Safety Act works are required, are you now going to have to contribute?! 😱

NewYorkie

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17:06 PM, 20th December 2023, About 11 months ago

Mr X would need to own more than 3 on 14/2/22, and the buyer would also need to own more than 3, including the one he's just bought, and even if it's his main home.

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