Building Safety Act 2022 – Unintended Consequence
The Government introduced legislation in order to try and tackle some of the fundamental building safety issues brought about by the Grenfell disaster in June 2017. Its aim was to ensure that those who developed defective buildings take responsibility for remedying them in order to make these buildings safe, particularly, those affected by cladding issues.
In essence, it provides an obligation on developers to remedy historical building safety defects in respect of residential buildings that are considered to be ‘high risk’, i.e. those that are at least 11 metres high or five storeys. This duty is extended even where they no longer own the building in question. Where the developer cannot be identified or has refused to pay towards its defective buildings, funding would be made available to pay for the remedial costs.
To the extent that the leaseholder holds a ‘qualifying lease’ in a ‘relevant building’, they are afforded protection from either having to contribute towards the remedial works (in case of cladding), or their contribution would be capped to a maximum of £15,000 for other remedial works (e.g. fire safety issues), which payments are to be spread over 10 years. If the remedial costs exceed the cap, developers would be required to meet the shortfall.
The main issue relates to the definition as to what constitutes a ‘qualifying lease’ for the purpose of the Act. The Act is precise and stipulates that the lease must have been granted before 14 February 2022. Where a new lease is extended under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993, a new lease would be granted in substitution for the existing lease. As the new lease will not be granted before 14 February 2022, the protections afforded to the at owners by the Building Safety Act will not apply, notwithstanding the fact that some leaseholders would have owned their leases from the date of grant of the original lease.
The general consensus is that the Government did not intend to exclude statutory protection to those who extended their leases post 14 February 2022, particularly given the recent press coverage of the Government seeking the balance the scale in favour of the leaseholders in protecting their interests. Pressure is therefore being applied on the Government by industry groups to address this defect! Very much unlike the financial measures being made available within the context of building safety, this defect, by the Government’s own making, can be remedied by way of a simple amendment to the legislation.
In the meantime, those leaseholders who are either seeking to embark on statutory lease extensions or those with ongoing claims, should obtain specialist solicitor’s advice to ensure that they are not adversely affected.
Bishop & Sewell’s award-winning Landlord and Tenant team are industry experts on Leasehold Reform legislation, including enfranchisement, lease extensions and Right To Manage.
If you would like to discuss any of the points raised in this article, please do not hesitate to contact Laurent Vaughan directly on 0207 079 4193 or lvaughan@bishopandsewell.co.uk.
Thank you for helping to make Jewish News the leading source of news and opinion for the UK Jewish community. Today we're asking for your invaluable help to continue putting our community first in everything we do.
For as little as £5 a month you can help sustain the vital work we do in celebrating and standing up for Jewish life in Britain.
Jewish News holds our community together and keeps us connected. Like a synagogue, it’s where people turn to feel part of something bigger. It also proudly shows the rest of Britain the vibrancy and rich culture of modern Jewish life.
You can make a quick and easy one-off or monthly contribution of £5, £10, £20 or any other sum you’re comfortable with.
100% of your donation will help us continue celebrating our community, in all its dynamic diversity...
Engaging
Being a community platform means so much more than producing a newspaper and website. One of our proudest roles is media partnering with our invaluable charities to amplify the outstanding work they do to help us all.
Celebrating
There’s no shortage of oys in the world but Jewish News takes every opportunity to celebrate the joys too, through projects like Night of Heroes, 40 Under 40 and other compelling countdowns that make the community kvell with pride.
Pioneering
In the first collaboration between media outlets from different faiths, Jewish News worked with British Muslim TV and Church Times to produce a list of young activists leading the way on interfaith understanding.
Campaigning
Royal Mail issued a stamp honouring Holocaust hero Sir Nicholas Winton after a Jewish News campaign attracted more than 100,000 backers. Jewish Newsalso produces special editions of the paper highlighting pressing issues including mental health and Holocaust remembrance.
Easy access
In an age when news is readily accessible, Jewish News provides high-quality content free online and offline, removing any financial barriers to connecting people.
Voice of our community to wider society
The Jewish News team regularly appears on TV, radio and on the pages of the national press to comment on stories about the Jewish community. Easy access to the paper on the streets of London also means Jewish News provides an invaluable window into the community for the country at large.
We hope you agree all this is worth preserving.
