Posted on: July 27, 2022 Posted by: AKDSEO Comments: 0

Summary:

1. Qualifying leaseholders in relevant buildings will be protected in law from the costs of cladding remediation.

2. This means that if you are a qualifying leaseholder, you will not have to pay for the removal of an unsafe cladding system and will no longer be the first port of call to fix historical building safety defects.

3. The leaseholder protections protect qualifying leaseholders, however work to fix defects funded though government funding, and funding secured through negotiations with industry cover all leaseholders in buildings over 11 metres.

How will cladding system costs be paid for?

4. The government has a comprehensive plan for the removal of an unsafe cladding system on all buildings above 11 metres.

5. As of 28 June 2022, over 45 of the largest residential developers have signed a pledge to take responsibility for all necessary work to address life-critical, fire safety defects in buildings over 11 metres that they had a role in developing or refurbishing in the past 30 years (since 5 April 1992). This will cut out the need for legal action on a building-by-building basis. See a list of the developers that have signed the building safety repairs pledge.

6. We are in the process of converting these pledges into legally binding contracts – see this statement on protecting leaseholders from the Secretary of State for Levelling Up. The government has underpinned these negotiations by bringing forward significant powers in the Act to hold industry to account.

7. Where the original developer or the building owner, or both, are not funding the works, the government has made £5.1 billion of public funding available to address life safety fire risks associated with cladding systems on high-rise (over 18 metres) residential buildings, including £4.5 billion through the Building Safety Fund. (The definition of ‘building owner’ can be found in What are my building owner’s legal obligations?). For high-rise residential buildings with unsafe cladding that missed the original registration deadline, government intends to reopen the Building Safety Fund and will focus on making sure the fund is risk driven.

8. Where the developer of a building above 11 metres cannot be identified or held responsible, funding will be made available through a new 11-18 metre cladding remediation scheme. Further details on this scheme will be provided in due course.

How does this affect you, the leaseholder?

9. If you are a qualifying leaseholder in a relevant building, then you will be protected from all costs associated with cladding remediation.

10. You will be required to provide a completed leaseholder deed of certificate to your building owner to prove you are a qualifying leaseholder and are therefore be protected from all cladding system remediation costs.

11. If you live in a building above 11 metres and you are classed as a non-qualifying leaseholder under the protections, then the government’s actions will still mean you are protected from cladding system costs.

12. If your building owner is – or is related to – the developer that installed the cladding system, that developer will be responsible for all remediation costs.

13. The government is also making funding available, through the Building Safety Fund, or the new 11-18 metre cladding remediation scheme to ensure the costs of remediating an unsafe cladding system no longer fall to leaseholders.