How many landlords are impacted by the building safety crisis?

How many landlords are impacted by the building safety crisis?

10:23 AM, 11th May 2023, About 10 months ago 2

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Hello, my name is Suzy Spilling, co-founder of the NON-Qualifying Leaseholder campaign group.

I didn’t know if any Property118 members are impacted by the Building Safety Act and Leaseholder Protections or are aware of the following NRLA survey.

Landlords must complete the NRLA Survey NOW so that NRLA can evaluate the extent of the impact on landlords with fire-safety issues. You do not have to be an NRLA member to take part. The survey is only live for two weeks & they hope to have results w/c 22 May.

The leaseholder protections do not apply to any leaseholders owning more than three residential properties and this may impact you as a landlord.

Our group of ‘Non-qualifying leaseholders’ have come together to campaign against the injustice of being held liable for the financial consequences of actions for which we were not responsible. The government have admitted that they are uncertain of the number of landlords this will impact, the number of buildings in which non-qualifying leases are held, and the impact of this discrimination on the progress of remediation.

We have held a number of meetings with the NRLA, to ask that they can work with us to create a stronger voice and demonstrate the unintended consequences of excluding ‘Non-qualifying’ leases from full protection against the costs of remediation works required to rectify ‘relevant defects’ as specified in the Building Safety Act.

We now need your urgent help. Please complete the NRLA survey,  to enable more accurate analysis of how many landlord leaseholders will be affected. Your building may not need remediation, but if you own more than three residential properties, your lease may be registered as non- qualifying, affecting its value, sale ability, and options in mortgage/remortgage, as Non Qualifying leases could be held liable for unlimited costs in perpetuity! This cannot be the intention of the Act, and we need to demonstrate the impact.

In addition to any non cladding fire safety remediation costs, non qualifying leaseholders are liable for the costs of litigation, as evidenced by the process of seeking Remediation Orders and Remediation Contribution Orders. Building owners, leaseholders and managing agents are encouraged to take legal action against any parties they identify as responsible in the development and construction of their building. Qualifying leaseholders cannot be held liable for litigation costs, non qualifying leaseholders have unlimited liability.Even after remediation is complete, the status of a non qualifying lease remains. RICS current guidance admits the difficulty in the valuation of non qualifying flats and many conveyancers are refusing to take instruction in the sale or purchase of leasehold flats due to the complexity of the qualification status. The Law Society has introduced the question of Leaseholder Certificates on the most recent LPE1 form with many lenders refusing finance on non qualifying leases which will have an impact on all of us.

Please help the campaign, we need protection for all leaseholders against the lack of regulation and unsafe building practices which led to the Grenfell tragedy, and the subsequent identification of unsafe buildings throughout the country.

We are encouraged by the support so far, and thank you for your kind attention

PLEASE CLICK ON LINK TO SURVEY HERE & COMPLETE ASAP:

https://nrla.fra1.qualtrics.com/jfe/form/SV_5zGAymbW2U9YY0C


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Comments

Shining Wit

12:32 PM, 13th May 2023, About 9 months ago

Hi Suzy,

Thank-you for your post.
With a couple of exceptions, the Property118 members haven't been that interested in the Cladding Scandal.

Over the last few years, there have been a number of articles/comments related to Building Safety and Leasehold issues, but there hasn't been much support for the innocent victims. I don't know why; presumably they all think they aren't personally affected.

Sadly, as you have highlighted above, anyone with a lease for flat in an affected property where there are non-qualifying leaseholders is also going to suffer collateral damage.

With enough support for the campaign, there is a chance that the UK government would follow the lead of the Irish government and introduce a solution that covers all leaseholders, for all historic safety defects, in all buildings. This would, finally, end the cladding scandal with some justice for the innocent victims.

Ed Regent

11:16 AM, 15th May 2023, About 9 months ago

Reply to the comment left by Shining Wit at 13/05/2023 - 12:32
Well said. I agree entirely.

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