- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (05/08/2023)
- Gwreiddiol (a wnaed Fel)
Point in time view as at 05/08/2023.
There are currently no known outstanding effects for the The Building Safety (Leaseholder Protections) (England) Regulations 2022.
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1.—(1) These Regulations may be cited as the Building Safety (Leaseholder Protections) (England) Regulations 2022 and come into force on 20th July 2022.
(2) These Regulations extend to England and Wales and apply in England only.
(3) In these Regulations—
“the Act” means the Building Safety Act 2022;
[F1“current landlord” means a person who is the landlord under a lease of premises in a relevant building;]
[F2“landlord group” has the meaning given in paragraph 3(4) of Schedule 8 to the Act;]
“leaseholder” means a tenant under a lease of a dwelling in a building;
[F3“named manager” means, in relation to a building, a person who is named in a lease as being the party with managing and repairing obligations in relation to the building or part of the building and who is a separate legal person from the freeholder of the building and the landlord of the building or part of the building;]
“remediation service charge” means a service charge(1) which includes a charge in respect of a relevant measure(2) relating to any relevant defect(3);
[F4“RMC” means a body corporate which is party to a lease of a building where—
the body corporate is limited by guarantee and the members of that body are tenants under leases of dwellings in the building (“leaseholders”), or
the majority of the shares of the body corporate are held by leaseholders; and]
“RTM company” has the same meaning as in the Commonhold and Leasehold Reform Act 2002(4).
Textual Amendments
F1Words in reg. 1(3) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 10(a)
F2Words in reg. 1(3) inserted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 10(b)
F3Words in reg. 1(3) inserted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 10(c)
F4Words in reg. 1(3) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 10(d)
Commencement Information
I1Reg. 1 in force at 20.7.2022, see reg. 1(1)
2. For the purposes of section 117(3)(c) of the Act the freehold estate in the building or part of the building is leaseholder owned where—
(a)the freehold estate is solely owned by tenants in the building, whether through a corporate structure or otherwise; and
(b)paragraphs (a), (b) and (d) of section 117(3) of the Act do not apply in relation to the building.
Commencement Information
I2Reg. 2 in force at 20.7.2022, see reg. 1(1)
3.—(1) In the definition of “the landlord group” in paragraph 3(4)(a) of Schedule 8 to the Act, the reference to a person associated with the relevant landlord is modified in accordance with paragraph (2).
(2) For the purposes of paragraph 3 of Schedule 8 to the Act, a person is not to be considered associated with the relevant landlord where they would only be associated by virtue of section [F5121(4) or (5)(a)] of the Act.
Textual Amendments
F5Words in reg. 3(2) substituted (9.2.2023) by The Building Safety (Leaseholder Protections) (England) (Amendment) Regulations 2023 (S.I. 2023/126), regs. 1(1), 2(2)
Commencement Information
I3Reg. 3 in force at 20.7.2022, see reg. 1(1)
4.—(1) Section 124 of the Act applies in relation to a building that would, but for section 117(3) of the Act, be a relevant building(5), with the modifications set out in paragraphs (2) and (3).
(2) The following may not be specified as a body corporate or partnership for the purposes of section 124(3) —
(a)a landlord under a lease of the relevant building or any part of it where that landlord is a company owned in part or in full by a majority of residential leaseholders of the building;
(b)a person who was such a landlord at the qualifying time; or
(c)a commonhold association, within the meaning of section 34 of the Commonhold and Leasehold Reform Act 2002.
(3) Section 124(5) applies as if, in the definition of “interested person”, after sub-paragraph (d) there were inserted—
“(da)a special measures manager, within the meaning of paragraph 4(2) of Schedule 7;”.
Commencement Information
I4Reg. 4 in force at 20.7.2022, see reg. 1(1)
5.—(1) For the purposes of paragraph 3 of Schedule 8 to the Act, the net worth of the landlord group at the qualifying time is determined in accordance with this regulation.
(2) Where the relevant landlord(6) is a private or public limited company(7) the net worth is calculated according to the following formula—
Net Worth = Total Assets – Total Liabilities – Intangible Assets
(3) In determining net worth of a landlord group(8) in accordance with paragraph (2)—
(a)the “total assets”, “total liabilities” and “intangible assets” of the relevant landlord and landlord group are to be determined from the most recent audited or filed accounts for that group audited or filed after 14 February 2017 but before 14 February 2022;
(b)subject to paragraph (3)(c) below, a copy of the accounts as set out in paragraph (3)(a) above must be provided to the leaseholder under regulation 6(5)(b);
(c)where audited accounts are not available, the landlord may produce as evidence for the landlord’s certificate according to regulation 6 the accounts which have most recently been filed at the relevant companies’ registry for the country in which the company is registered;
(d)where the accounts referred to in this paragraph are not prepared in pounds sterling, the value of any asset or liabilities must be converted using the Bank of England daily spot rate for the respective currency on 14 February 2022;
(4) Where the relevant landlord itself comprises more than one person—
(i)Those persons jointly shall be the relevant landlord;
(ii)The total net worth of the relevant landlord should be taken as the sum of the net worth of each person and their associates; and
(iii)The number of relevant buildings(9) is the total number of relevant buildings owned either leasehold or freehold by each person and their associates.
(5) Where the relevant landlord is an individual, the net worth is calculated according to the following formula—
Net worth = Assets - Liabilities
(6) In determining the net worth of a landlord group in accordance with paragraph (5), the “assets” and “liabilities” of a landlord includes those of the landlord’s spouse or civil partner at the qualifying time(10).
Commencement Information
I5Reg. 5 in force at 20.7.2022, see reg. 1(1)
6.—(1) A current landlord must provide a certificate (a “landlord’s certificate”) to a leaseholder in each of the following circumstances—
(a)when the current landlord makes a demand to a leaseholder for the payment of a remediation service charge;
(b)within four weeks of receipt of notification from the leaseholder that the leasehold interest is to be sold;
(c)within four weeks of becoming aware (either themselves or by notification from another person) of a relevant defect not covered by a previous landlord’s certificate; or
(d)within four weeks of being requested to do so by the leaseholder.
[F6(e)within four weeks of becoming aware of a new leaseholder deed of certificate (as defined in regulation 6 of the Building Safety (Leaseholder Protections) (Information etc.) (England) Regulations 2022) which is in relation to a lease of a dwelling in the building of which the current landlord is the landlord and which contained information that was not included in a previous landlord’s certificate.]
(2) The landlord’s certificate under paragraph (1) must—
(a)be in the form set out in Schedule 1,
(b)confirm whether or not the relevant landlord (as defined in paragraph 3(1) to Schedule 8 of the Act) met the contribution condition under paragraph 3 of that Schedule,
(c)confirm whether or not the relevant landlord (as defined in paragraph 2(4) to Schedule 8 of the Act), met the condition in paragraph 2(2) of that Schedule 8 and was responsible for(11) the relevant defect or was associated with a person responsible for a relevant defect,
(d)contain the information referred to in paragraph (3),
(e)be accompanied by the evidence set out in paragraph (4),
(f)be signed by the person who is the current landlord on the date the certificate is completed.
[F7(2A) But the requirement in paragraph (2) that the landlord’s certificate contain the information referred to in paragraph (3) and be accompanied by the evidence set out in paragraph (4) is modified as set out in paragraphs (2B) to (2G).
(2B) Where the landlord’s certificate confirms that—
(a)either the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) met the contribution condition under paragraph 3 of that Schedule or the leaseholder’s lease is not a qualifying lease as defined in section 119 of the Act, and
(b)the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act)—
(i)met the condition in paragraph 2(2) of that Schedule, or
(ii)did not believe at the time of completing the certificate that there was a relevant defect,
it does not have to contain the information referred to in paragraph (3) nor be accompanied by the evidence set out in paragraph (4).
(2C) Where the landlord’s certificate confirms that—
(a)the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act)—
(i)met the condition in paragraph 2(2) of that Schedule, or
(ii)did not believe at the time of completing the certificate that there was a relevant defect, and
(b)the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) did not meet the contribution condition under paragraph 3 of that Schedule,
it does not have to contain the information referred to in paragraphs (3)(a) and (b) nor be accompanied by the evidence set out in paragraph (4)(d).
(2D) Where the landlord’s certificate confirms that—
(a)the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act) did not meet the condition in paragraph 2(2) of that Schedule, and
(b)either the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) met the contribution condition under paragraph 3 of that Schedule, or the leaseholder’s lease is not a qualifying lease as defined in section 119 of the Act,
it does not have to contain the information referred to in paragraphs (3)(a) and (c) nor be accompanied by the evidence set out in paragraphs (4)(a), (b), (e) and (f).
(2E) Where the landlord’s certificate confirms that—
(a)the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act) did not meet the condition in paragraph 2(2) of that Schedule, and
(b)the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) is exempt from the contribution condition under paragraph 3(6) of that Schedule,
it does not have to contain the information referred to in paragraph (3)(c) nor be accompanied by the evidence set out in paragraphs (4)(a) and (b).
(2F) Where the landlord’s certificate confirms that—
(a)the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act)—
(i)met the condition in paragraph 2(2) of that Schedule, or
(ii)did not believe at the time of completing the certificate that there was a relevant defect, and
(b)the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) is exempt from the contribution condition under paragraph 3(6) of that Schedule,
it does not have to contain the information referred to in paragraph (3) nor be accompanied by the evidence set out in paragraphs (4)(a), (b) and (d).
(2G) Where the landlord’s certificate confirms that—
(a)the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act) did not meet the condition in paragraph 2(2) of that Schedule,
(b)the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) did not meet the contribution condition under paragraph 3 of that Schedule, and
(c)the value of the qualifying lease on 14th February 2022 was below £325,000 in Greater London or £175,000 elsewhere in England,
it does not have to be accompanied by the evidence set out in paragraphs (4)(e) and (f).]
[F8(3) The information is—
(a)the percentage of the storeys in the relevant building for which each relevant landlord was the landlord at the qualifying time;
(b)in relation to the condition in paragraph 2 of Schedule 8 to the Act, where a relevant landlord was part of a landlord group at the qualifying time, details of the corporate structure of the relevant landlord and any person associated with the relevant landlord and including—
(i)the names of all the directors of each company in that group and directors of each corporate trustee, including in each case nominee and shadow directors or any person occupying the position of director by whatever name called;
(ii)the name of any other person or persons who has the right to exercise or does exercise significant control or influence directly or indirectly over the group;
(iii)details of the type of trust if any, the law to which it is subject and where it is tax resident; and
(iv)in relation to trusts with an interest in the shares of any company comprised in the group, details of the economic settlor, the named beneficiaries or class of beneficiaries and protector and any other person who has the right to exercise or does exercise significant influence or control directly or indirectly over the trust;
(c)in relation to the condition in paragraph 3 of Schedule 8 to the Act, where the relevant landlord (as defined in paragraph 3(1) of Schedule 8 to the Act) was part of a landlord group at the qualifying time—
(i)details of the corporate structure of the group, setting out—
(aa)the companies which make up the landlord group,
(bb)the beneficial owner of each company in the group, and
(cc)if the beneficial owner of the group or any company comprised in the group is, or includes, a trust foundation or arrangement of a similar character, details of the trust and the trustees;
(ii)the name of any other person who has the right to exercise or does exercise significant control or influence directly or indirectly over the group;
(iii)details of the type of trust if any, the law to which it is subject and where it is tax resident; and
(iv)in relation to trusts with an interest in the shares of any company comprised in the group—
(aa)details of the economic settlor;
(bb)the named beneficiaries or class of beneficiaries and protector, and
(cc)any other person who has the right to exercise or does exercise significant influence or control directly or indirectly over the trust.]
(4) The landlord certificate must be accompanied by—
(a)the set of company accounts for the relevant landlord (in accordance with regulation 5) and, where the relevant landlord is part of a landlord group, for each company in the landlord group;
(b)a statement from a chartered accountant or finance director of the landlord company—
(i)setting out the net worth of the relevant landlord and, where the relevant landlord is part of a landlord group, of each company in the landlord group;
(ii)confirming the net worth is calculated in accordance with regulation 5 and paragraph 3 of Schedule 8 to the Act (the “net worth calculation”);
(iii)confirming the net worth calculations accurately represents the net worth of the relevant landlord (and, where the relevant landlord is part of a landlord group, of each of the companies in the landlord group);
(c)documents or receipts that demonstrate that the relevant building was constructed or converted before the relevant period(12) and details of any relevant works(13) which were carried out in the relevant period;
(d)evidence (where applicable) that—
(i)the person who undertook works relating to the relevant defect or commissioned those works was not the relevant landlord and was not associated with the relevant landlord (as defined in paragraph 2(4) of Schedule 8 to the Act) together with confirmation of the identity of the person who did undertake such works, and
(ii)where those works were commissioned or undertaken by a joint venture, proof the relevant landlord was not party to that joint venture, together with details of the persons who were parties to the joint venture;
(e)details of any relevant defects and [F9any relevant measures (as defined in paragraph 1 of Schedule 8 to the Act) taken in relation to those relevant defects since 28th June 2017]; and
(f)details of any costs paid or due to be paid in relation to [F10any relevant measures taken in relation to] any relevant defects in the relevant building since 28 June 2017, including—
(i)the total sum of any such costs;
(ii)details of the number of flats between which the costs should be divided; and
(iii)the leaseholder’s maximum remaining liability.
(5) In paragraph (4)(f)(iii), the “leaseholder’s maximum remaining liability” is the maximum capped amount payable by the leaseholder in respect of a relevant measure(14) deducting any payments made by the leaseholder in respect of any relevant measure since 28 June 2017.
(6) Where the current landlord is unable to provide any of the information required for the landlord’s certificate in paragraphs (3) and (4) the current landlord must apply to other persons who are relevant landlords requesting the information in accordance with regulation 7 which those persons must provide within 3 weeks of having been asked.
(7) [F11If a current landlord] does not provide a certificate which complies with this regulation in the form outlined in [F12Schedule 1] to the leaseholder, the condition in paragraph 2(2) of Schedule 8 to the Act is to be treated as met in accordance with paragraph 14(2) of Schedule 8 to the Act.
(8) In this regulation, “relevant landlord”—
(a)in paragraphs (2)(b) [F13, (2B)(a), (2C)(b), (2D)(b), (2E)(b), (2F)(b), (2G)(b), (3)(c)] and (4)(a) and (b), has the meaning given in paragraph 3(1) of Schedule 8 to the Act;
(b)otherwise, has the meaning given in paragraph 2(4) of Schedule 8 to the Act.
[F14(9) Where a current landlord has provided a landlord’s certificate to a leaseholder they must provide a copy of that certificate to any other landlords of premises in the building, the RMC, RTM company or named manager within one week of providing the certificate to the leaseholder.
(10) Where a current landlord fails to comply with the requirement in paragraph (9) the costs of a relevant measure relating to a relevant defect in the building to which the certificate relates are prescribed costs under paragraph 16(4) of Schedule 8 to the Act and so are not to be regarded as relevant costs to be taken into account in determining the amount of a service charge payable under a relevant lease of premises in that building and must not be met from a relevant reserve fund as defined in paragraph 10 of Schedule 8 to the Act.]
Textual Amendments
F6Reg. 6(1)(e) inserted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(2)
F7Reg. 6(2A)-(2G) inserted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(3)
F8Reg. 6(3) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(4)
F9Words in reg. 6(4)(e) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(5)(a)
F10Words in reg. 6(4)(f) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(5)(b)
F11Words in reg. 6(7) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(6)(a)
F12Words in reg. 6(7) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(6)(b)
F13Words in reg. 6(8)(a) inserted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(7)
F14Reg. 6(9)(10) inserted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 11(8)
Commencement Information
I6Reg. 6 in force at 20.7.2022, see reg. 1(1)
7. A relevant landlord within the meaning of paragraph 2(4) of Schedule 8 to the Act must, within 3 weeks of a request from the current landlord, provide the current landlord with the following information—
(a)the percentage of the storeys in the relevant building for which they were the relevant landlord at the qualifying time;
(b)where the relevant landlord was part of a landlord group at the qualifying time, details of the corporate structure of that landlord’s group(15) and including—
(i)the names of all the directors of each company in that group and directors of each corporate trustee, including in each case nominee and shadow directors or any person occupying the position of director by whatever name called;
(ii)the name of any other person or persons who has the right to exercise or does exercise significant control or influence directly or indirectly over the group;
(iii)details of the type of trust if any, the law to which it is subject and where it is tax resident; and
(iv)in relation to trusts with an interest in the shares of any company comprised in the group, details of the economic settlor, the named beneficiaries or class of beneficiaries and protector and any other person who has the right to exercise or does exercise significant influence or control directly or indirectly over the trust.
Commencement Information
I7Reg. 7 in force at 20.7.2022, see reg. 1(1)
8. The following persons are prescribed for the purposes of paragraph 3(6)(c) of Schedule 8 to the Act—
(a)government departments and any arm’s length bodies;
(b)the Crown;
(c)NHS Foundation trusts.
Commencement Information
I8Reg. 8 in force at 20.7.2022, see reg. 1(1)
9.—(1) Subject to paragraph (2), for the purposes of paragraph 4 and/or paragraph 6(6) of Schedule 8 to the Act the value of a qualifying lease is—
(a)where the leasehold interest of the dwelling (“D”) to which the qualifying lease relates was most recently disposed of after 31 December 2020, the price paid at completion (in pounds sterling to the nearest pound) for that leasehold interest;
(b)where the most recent disposal of D took place on the open market on or before 31 December 2020, to be determined by applying the following formula—
Vy × My
where—
Vy is the price paid at completion (in pounds sterling to the nearest pound) for D;
My is the multiplier for the year in which that disposal took place, as set out in the table in Schedule 2.
(2) Where it is not possible to identify the price paid on completion of the most recent disposal of D then the value of the qualifying leasehold interest is to be treated as equal to the value of the substitute qualifying lease.
(3) In this regulation—
(a)“substitute qualifying lease” means a qualifying lease of the most recently disposed of dwelling in the same building, ignoring any dwellings which had an internal floorspace which is more than 15% larger or 15% smaller than D; and
(b)any reference to a disposal means a disposal on the open market.
Commencement Information
I9Reg. 9 in force at 20.7.2022, see reg. 1(1)
10.—(1) The reference in paragraph 2 of Schedule 8 to the Act which states that no service charge is payable under a F15... lease in a relevant building in respect of a relevant measure relating to a relevant defect is modified in accordance with [F16paragraph (2)].
(2) For the purposes of paragraph 2 of Schedule 8 to the Act—
(a)no service charge is payable under a non-residential lease in a relevant building where the conditions set out in paragraph 2(2) of the Act are met; and
(b)the reference in paragraph 10(2) of Schedule 8 to the Act applies to non-residential leases.
Textual Amendments
F15Word in reg. 10(1) omitted (5.8.2023) by virtue of The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 12(a)
F16Words in reg. 10(1) substituted (5.8.2023) by The Building Safety (Leaseholder Protections etc.) (England) (Amendment) Regulations 2023 (S.I. 2023/895), regs. 1(1), 12(b)
Commencement Information
I10Reg. 10 in force at 20.7.2022, see reg. 1(1)
11.—(1) This regulation applies where a leaseholder or relevant landlord (the “applicant”) wishes to apply to the First-tier Tribunal for an order under paragraph 16(5) of Schedule 8 to the Act.
(2) The applicant can make an application under paragraph (1) above where—
(a)the applicant believes that a relevant landlord has made a false claim in the landlord’s certificate provided under regulation 6, including but not limited to—
(i)stating that the relevant landlord is not the developer(16) of the relevant building or is not associated with the developer; or
(ii)stating the relevant landlord does not meet the contribution condition;
(b)the relevant landlord or current landlord has not given the leaseholder sufficient time(17) to provide information to prove they have a qualifying lease(18).
(3) In this regulation, “relevant landlord” has the meaning given in paragraph 16(8) of Schedule 8 to the Act.
Commencement Information
I11Reg. 11 in force at 20.7.2022, see reg. 1(1)
12. For the purposes of section 132 of the Act, any person making, or intending to make, an application for a building liability order under section 130 of the Act may apply to the High Court for an information order.
Commencement Information
I12Reg. 12 in force at 20.7.2022, see reg. 1(1)
13.—(1) The Secretary of State must from time to time—
(a)carry out a review of the regulatory provision contained in these Regulations, and
(b)publish a report settling out the conclusions of the review.
(2) The first report must be published before the end of the period of five years beginning with the date on which these Regulations come into force.
(3) Subsequent reports must be published at intervals not exceeding five years.
(4) Section 30(4) of the Small Business, Enterprise and Employment Act 2015(19) requires that a report published under this regulation must, in particular—
(a)set out the objectives intended to be achieved by the regulatory provision referred to in paragraph (1)(a),
(b)assess the extent to which those objectives are achieved,
(c)assess whether those objectives remain appropriate, and
(d)if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involved less onerous regulatory provision.
Commencement Information
I13Reg. 13 in force at 20.7.2022, see reg. 1(1)
Signed by the authority of the Secretary of State for Levelling Up, Housing and Communities
Greenhalgh
Minister for Building Safety and Fire
Department for Levelling Up, Housing and Communities
28th June 2022
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