Freeholder, Leaseholder – can you be both?
3 years ago | 14 comments
Leaseholder protection deed – can a new buyer have it?
11:40 AM, 31st March 2023, 3 years ago
4
Hello, My daughter’s flat is blighted by the fire safety issues arising from the Grenfell tragedy, hence she wants to get a “Leaseholder protection deed of Certificate”, which provides capped protection from payment of remediation costs, and wishes to use this to help her sell the property in the coming one or two years.
But she is concerned that only the owner of the property on the 14th February 2022 is able to get this protection.
However, the second “tick box” question asked on the application form for the certificate is “The dwelling was owned by another person at the beginning of 14th February and was their only or principal home on that date”, which implies to me that if a new owner of the flat applied for the deed of protection, they would tick this box, and apply for, and receive, protection. (FYI – the first “tick box” question on the application form is “The dwelling was owned by me at the beginning of 14th February 2022 and was my only or principal home on that date”).
Can anyone advise whether my interpretation is correct?
In other words, can someone buying the flat from my daughter now, still apply for protection and receive it, even though they clearly were not the owner on 14th February 2022?
Many thanks!
Steve
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Member Since January 2015 - Comments: 1442 - Articles: 1
12:55 PM, 31st March 2023, About 3 years ago
I would think that your interpretation is correct if you transferred the flat from yourself to your daughter after the 14th February 2022 AND that up to some point on the 14th February 2022 the flat was your only or principal residence.
That takes care of if the transfer was on the 14th, say 2pm on the contract, it was still legally your only or principal residence from 00.1 to 13.59 on the 14th February.
Member Since October 2022 - Comments: 407
4:10 PM, 3rd April 2023, About 3 years ago
Looking on a conveyancing website it appears conveyancers are not proceeding because of this issue. They say that if a flat is sold lease assigned after 14 Feb then the purchaser will not be a qualifying leaseholder under BSF regs. This means in a block some will be and others not.
Member Since October 2020 - Comments: 63
12:55 PM, 21st June 2023, About 3 years ago
I have just had this come up on conveyancing. As I am a landlord I am not a qualifying leaseholder, so does this mean if I sell to someone that will be a resident leaseholder, they will not benefit from the cap?
In which case the government has not really thought through the wording, have they?
Not a problem in my case as there are no works to the block, but its peace of mind for incoming owners.
Member Since October 2020 - Comments: 63
12:59 PM, 21st June 2023, About 3 years ago
See some articles on Leasehold Knowledge Partnership about the Building Safety Act 2022.
https://www.leaseholdknowledge.com/dont-extend-your-lease-if-that-puts-you-on-the-hook-for-building-safety-bills-this-applies-to-non-highrises-too/