Non-qualifying leaseholders impact on portfolio landlords?

Non-qualifying leaseholders impact on portfolio landlords?

0:01 AM, 13th March 2024, About 9 months ago 5

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Hi, I’ve recently come across this in a property talk, and am very concerned about the implications of this to portfolio landlords who have more than 3 leasehold properties by April 22. I’d like your views and clarification on this.

https://www.gov.uk/guidance/remediation-costs-what-leaseholders-do-and-do-not-have-to-pay

Non-qualifying leaseholders

30. Non-qualifying leaseholders are only protected from the costs of historical safety remediation if your building owner is – or is associated with – the developer who is responsible for that defect. Where this is not the case, you will be liable for remediation costs as per the terms of your lease – but the costs passed on to you cannot be increased to replace money that qualifying leaseholders are protected from paying.

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.”

What do others think?


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Harlequin

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9:48 AM, 13th March 2024, About 9 months ago

I'm just amazed that we have no traffic on this site about the injustice of this act and the non qualifying landlord - no action at all.
Anyone made any comments to their MPs to try and get some response on why they are penalising businesses - the famous quote was a non qualifying landlord was seen as 'those of substantial means' so only right that they should be made to pay for the defects of the building - can't share this view Mr Gove.

NewYorkie

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11:14 AM, 13th March 2024, About 9 months ago

Yet again, a 'two-tier' system. All leaseholders should be treated equally under the law [as should all landlords... S24!]. Leaseholders who subsequently sublet their property, bought them on the same terms and pay the same service charges and ground rents as those who don't sublet.

There are numerous reasons why leaseholders sublet, including their need to move home and their inability to sell due to the leasehold scandal. The government doesn't know how well-off or not a landlord is, and I can't see that standing up in court as an excuse for different treatment.

I can see many leaseholders walking away from their properties if faced with huge bills.

Cathie

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15:45 PM, 13th March 2024, About 9 months ago

I sold my flat due to this as I considered the risk of a substantial bill at some point to be a concern.

Harlequin

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16:09 PM, 13th March 2024, About 9 months ago

It’s not just that it is being a non qualifying leaseholder and passing that status onto the new buyer/owner. They are then non qualifying.

Harlequin

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11:04 AM, 16th March 2024, About 9 months ago

I'm just incredulous that there is so little traffic on this site regarding this - I'm working with two blocks - one RTM and we've taken on the developer, the other non rtm has to go the specified route - but is anyone out there actively querying the reasoning behind the non qualifying status and the effect it will have on a Landlord - and passing on this status (non qualifying flat) to a buyer - who in their right minds would buy a flat with this status when they can buy one 'free'.
So many have been paying for waking watch, extra insurances, not being able to sell/remortgage but just 'sitting it out' with occasional protests as in the papers today but it quickly disappears from minds.
This is a big deal. You can move things on without waiting for the BSA and your management to move it all on.

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