The Building Safety Act 2022 (BSA) aims to revolutionize building safety regulations, particularly for high-rise residential buildings. However, a specific provision within the Act – Section 119 – has caused confusion and concern for leaseholders. Blackstone Solicitors, a leading law firm serving clients across England and Wales, delves into Section 119, the “qualifying lease” concept, and the recent amendments addressing a key loophole. In this article, Building Safety Act 2022 Section 119, we take a look at the process and mechanism involved.
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Understanding Section 119 of the BSA
Section 119 of the BSA plays a crucial role in determining which leaseholders are exempt from the financial burden of cladding remediation costs under the Act. The section defines a “qualifying lease” as one that meets specific criteria, including:
- Long Lease of a Single Dwelling: The lease must be a long leasehold (typically exceeding 21 years) for a single dwelling within a relevant building (usually a high-rise residential building above a certain height threshold).
- Service Charge Liability: The tenant under the lease must be liable to pay a service charge to the landlord.
- Lease Granted Before 14 February 2022: This is where the controversy arises. The lease needs to have been granted before 14th February 2022 to be considered a qualifying lease.
The “Qualifying Lease” Loophole and its Implications
The seemingly straightforward time-based criterion in Section 119 (lease granted before 14 February 2022) has created a significant issue. Many leaseholders who renewed their leases after this date – even if the original lease was granted well before 2022 – lose the protections offered by being classified as a “qualifying lease.” This can leave them facing significant financial burdens for cladding remediation works.
The government recognized this as an unintended consequence of Section 119 and introduced amendments to address the “qualifying lease” loophole.
Recent Amendments to Section 119: Introducing “Connected Replacement Leases”
In October 2023, the government enacted amendments to the BSA through the Leasehold Reform (Ground Rent) Act 2022. These amendments introduce the concept of “connected replacement leases” to address the issue with lease renewals.
A “connected replacement lease” is essentially a new lease granted on or after 14 February 2022 that meets the following criteria:
- Replaces Another Lease: The new lease replaces a qualifying lease (granted before 14 February 2022) for the same dwelling within the relevant building.
- Term and Property: The term of the new lease begins at the end of the replaced qualifying lease, and it covers the same property as the original lease.
By introducing “connected replacement leases,” the amendments aim to ensure that leaseholders who renew their qualifying leases before the remediation works are completed are not unfairly burdened with the costs. Their renewed lease will still be considered a qualifying lease, offering them protection from significant cladding remediation charges.
Important Note: The legal landscape surrounding building safety and leasehold protections is constantly evolving. Blackstone Solicitors can provide you with the latest updates on the interpretation and application of Section 119 and the concept of “connected replacement leases.”
The Significance of the Amendments for Leaseholders
The amendments to Section 119 offer significant relief for leaseholders who renewed their qualifying leases after 14 February 2022:
- Protection from Cladding Remediation Costs: Leaseholders whose renewed leases qualify as “connected replacement leases” maintain the protections offered by the BSA, potentially shielding them from substantial cladding remediation charges.
- Fairness and Consistency: The amendments address the unfairness of the original time-based criterion in Section 119 and promote a more consistent approach to leaseholder protections.
- Greater Certainty: Clarity regarding the treatment of renewed leases minimizes confusion and empowers leaseholders to better understand their financial liabilities under the BSA.
Blackstone Solicitors: Your Partner in Leasehold Reform and Building Safety
Blackstone Solicitors possesses a team of legal specialists adept at navigating the complexities of leasehold reform and building safety regulations. We can assist leaseholders with:
- Understanding the implications of Section 119 and the “qualifying lease” concept.
- Determining if your lease qualifies for protection under the BSA.
- Assessing the impact of the recent amendments on your situation.
- Negotiating with landlords regarding building safety charges.
- Seeking legal advice on your rights and obligations under the BSA.
How we can help
We have a proven track record of helping clients deal with the legal aspects of the building safety act 2022. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Commercial Property Solicitors
It is important for you to be well informed about the issues and possible implications of the building safety act 2022. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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