Question on qualifying or non-qualifying leaseholders for cladding remediation work

ileven1225

Hi everyone,

Not sure if this is the right place to ask, if not, please let me know where to raise this question.

From the link below:
https://www.gov.uk/guidance/leaseholder-and-resident-information-on-the-building-safety-fund#proving-you-are-a-qualifying-leaseholder

If you are a qualifying leaseholder, you are protected in law from costs to make your building safe. This includes a cap to the amount you may be asked to contribute.

You are a qualifying leaseholder if your property is in a building above 11 metres and on 14 February 2022:

- your property was your main home, or

- you owned no more than three UK residential properties in total

My questions are:
1. if the property is shared ownership, would it be treated as one property or 0.5 property?
2. If 2 properties in personal name, 2 properties in limited company, would the goverment treat them as 4 properties (non-qualifying leaseholder) or treat them as seperate untities so each untity owns 2 properties in total (both become qualifying leaseholder)?

Much appreciated for your views on the above

silvercar

Limited company is a separate entity, so any properties owned by a Ltd company aren’t owned by you.

ileven1225

silvercar said:

Limited company is a separate entity, so any properties owned by a Ltd company aren’t owned by you.

thanks for the clarification. Would it apply to limited company as well? It means if a limited company owns 2 properties, the owner of the company owns another 2 properties under personal name, the limited company is still a qualifying leaseholder?

user1977

I would recommend reading the actual legislation, rather than the summary in the link you've quoted.

silvercar

More information here, including a link you can click on that gives you the questions you need to answer in a Word document:
https://www.gov.uk/guidance/qualifying-date-qualifying-lease-and-extent

The key question is "The dwelling was owned by me at the beginning of 14th February 2022, was not my only or principal home on that date, and on that date I owned no more than two dwellings in the United Kingdom in addition to the dwelling". I would think that if you were completing that on behalf of a limited company you would tick that box if the company owned 3 or fewer properties.

I am not a lawyer, so you may want to take advice.

ileven1225

user1977 said:

I would recommend reading the actual legislation, rather than the summary in the link you've quoted.

Thanks I was searching but did not find the legislation or any document giving more explanation, can you pass me a link to read? 

silvercar

https://www.legislation.gov.uk/ukpga/2022/30/section/119/enacted

fullyrendered

Your shared ownership property is one property.

Are all four properties leasehold flats in blocks over 11 metres that need cladding remediation?

For the purposes of qualification, only one of the two flats in your name can be your main home, so you may well be a qualifying leaseholder, but only have the costs capped at one property.

In respect of the properties in the name of a limited company, neither can be your main residence, because you will have identified that in your claim for the flat in your name. Do you rent these out?

silvercar

fullyrendered said:

In respect of the properties in the name of a limited company, neither can be your main residence, because you will have identified that in your claim for the flat in your name. Do you rent these out?

Does the limited company even figure in the calculations as it is a separate legal entity? So as far as the personal ownership is concerned, the limited company is irrelevant.

What isn't clear to me is whether the limited company, as owner of only 2 flats, counts as a qualifying lease.

ileven1225

silvercar said:

Does the limited company even figure in the calculations as it is a separate legal entity? So as far as the personal ownership is concerned, the limited company is irrelevant.

What isn't clear to me is whether the limited company, as owner of only 2 flats, counts as a qualifying lease.

yes, I agree with you. Currently I believe the 2 properties under personal names shall be OK within qualifying leaseholder category, as the limited company is treated as separate legal entity, provided that all other requirement being met. 

I haven't found any guidance on limited company and I guess the government hasn't got time to look into this scenario yet. However, I believe limited company owning 3 or less properties shall be treated with qualifying leaseholder. 

ileven1225

Any other views on this topics please? Much appreciated