Lexsure e-ROT

Cladding & Building Safety · Report on Title scenario

Is this a qualifying lease under the Building Safety Act?

It turns on three things and a date. The building has to be a relevant building — broadly, at least 11 metres or five storeys, containing at least two dwellings, and not owned by its own leaseholders. The lease has to be a long lease with a service charge, granted before 14 February 2022. And the test is applied to the position as it stood on that date, which means it is about the seller's circumstances rather than yours.

From the e-ROT archive

This scenario is drawn from Report on Title material dealing with this specific circumstance.

Lexsure master Report on Title paragraph: Building Safety Act 2022 Considerations - Qualifying Lease · See the wording

Why a date in 2022 decides your position

The leaseholder protections were designed with an anti-gaming rule built in. The tests are applied as at 14 February 2022 — the day the draft protections were first published — so nobody could rearrange their affairs once the rules were known.

The practical consequence for a buyer is unusual and easy to miss: whether your flat is protected depends on facts about whoever owned it in February 2022. Whether it was their only or main home then; how many dwellings they owned then. Your own circumstances do not come into it.

Already bought, and been charged for remediation?

If you have received a bill for building safety works, whether your lease qualified for the statutory protections is the first question — and what was reported to you during the purchase is the second.

Find out what should have been explained → WhenIBought.com

The protections travel with the flat

This is the part that matters most when buying, and the Lexsure wording below states it directly: the protections attach to the property on the basis of its status on the qualifying date, and they transfer automatically to later buyers.

Both ways. A flat that qualified then qualifies for you. A flat that did not qualify then does not start qualifying because you would have met the test yourself.

So the question to get answered before exchange is a factual one about the seller's position in February 2022, and the evidence for it is the Leaseholder Deed of Certificate.

The trap: extending the lease can lose the protection

A statutory lease extension usually works by surrendering the existing lease and granting a new one. A new lease is not a lease granted before 14 February 2022 — and the qualifying criteria require one.

The same Lexsure guidance records this as a known problem, states the expectation that landlords will reflect a qualifying leaseholder's existing protections in any extension or variation, and advises leaseholders to take legal advice and agree contractual terms with the landlord before taking a new lease.

If you are buying a flat in a relevant building and expect to extend the lease, raise this specifically and early. It is the one place in conveyancing where doing something sensible about one problem can create a much larger one.

What lenders want to see

Building safety has been one of the most active areas of lender requirement since 2022, and the requirements are not uniform. Some lenders ask for the certificates; some ask for evidence that remediation is funded; some treat a qualifying lease as a condition of lending in a relevant building.

Requirements have also moved repeatedly as the regime has developed, so a position taken from another transaction or from a year-old discussion is unreliable.

The Lexsure Lender Archive holds the current and historic answers lender by lender.

Research lender requirements → Lexsure Lender Archive

From the e-ROT archive

Report on Title paragraph

Building Safety Act 2022 Considerations - Qualifying Lease

Master precedent Lexsure e-ROTScope Transfer to later buyersWord count 53Status Current master paragraph

The protections which apply to the property based on its status on 14 February 2022 are automatically transferred to future buyers of the lease. This means that if the property was eligible for the protections on 14 February 2022 and is sold subsequently, the buyer also benefits from those protections (and vice versa). …

Master precedent wording. This is current Lexsure Report on Title material, shown here in extract and reproduced exactly. The paragraph it comes from incorporates government guidance at length; that guidance changes, and this extract is not a statement of the current position by this page.

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