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

eddddy

ileven1225 said:

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. 

I'd guess the key clause in the legislation is:

(2)A lease is a “qualifying lease” if

(d) at the beginning of 14 February 2022 (“the qualifying time”)

(i) the dwelling was a relevant tenant’s only or principal home,

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

So can a company have a principle home? I suspect it can't. Meaning that no company owned property would qualify.


(But, on the other hand, this legislation refers to a tenant as being a "person" - and generally a "person" would include a limited company. Other legislation specifically refers to an "individual" rather than a "person", when it's intended to exclude companies.)

silvercar

eddddy said:

ileven1225 said:

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. 

I'd guess the key clause in the legislation is:

(2)A lease is a “qualifying lease” if

(d) at the beginning of 14 February 2022 (“the qualifying time”)

(i) the dwelling was a relevant tenant’s only or principal home,

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

So can a company have a principle home? I suspect it can't. Meaning that no company owned property would qualify.


(But, on the other hand, this legislation refers to a tenant as being a "person" - and generally a "person" would include a limited company. Other legislation specifically refers to an "individual" rather than a "person", when it's intended to exclude companies.)

If you look at the whole of (2), there is an implied "or":

(2)A lease is a “qualifying lease” if—

(a)it is a long lease of a single dwelling in a relevant building,

(b)the tenant under the lease is liable to pay a service charge,

(c)the lease was granted before 14 February 2022, and

(d)at the beginning of 14 February 2022 (“the qualifying time”)—

(i)the dwelling was a relevant tenant’s only or principal home,

(ii)a relevant tenant did not own any other dwelling in the United Kingdom, or

(iii)a relevant tenant owned no more than two dwellings in the United Kingdom apart from their interest under the lease.

The paragraphing/ notation implies to me:

(2) (a), (b), (c) and (d) and within (d) (i), (ii) or (iii) - otherwise it would have been written as (a) to (f) with (d)(ii) being (e) and (d)(iii) being (f).

So the relevant tenant is the limited company that needs  to have the dwelling as the principle home, not own any other dwelling in the UK or owned no more than 2 other dwellings.

ileven1225

eddddy said:

ileven1225 said:

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. 

I'd guess the key clause in the legislation is:

(2)A lease is a “qualifying lease” if

(d) at the beginning of 14 February 2022 (“the qualifying time”)

(i) the dwelling was a relevant tenant’s only or principal home,

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

So can a company have a principle home? I suspect it can't. Meaning that no company owned property would qualify.


(But, on the other hand, this legislation refers to a tenant as being a "person" - and generally a "person" would include a limited company. Other legislation specifically refers to an "individual" rather than a "person", when it's intended to exclude companies.)

that's interesting that a 'person' including a limited company. I did not find 'individual' in the context so I think it could imply that Limited company can have 3 or less residential properties as a qualifiing leaseholder. 

ileven1225

silvercar said:

If you look at the whole of (2), there is an implied "or":

(2)A lease is a “qualifying lease” if—

(a)it is a long lease of a single dwelling in a relevant building,

(b)the tenant under the lease is liable to pay a service charge,

(c)the lease was granted before 14 February 2022, and

(d)at the beginning of 14 February 2022 (“the qualifying time”)—

(i)the dwelling was a relevant tenant’s only or principal home,

(ii)a relevant tenant did not own any other dwelling in the United Kingdom, or

(iii)a relevant tenant owned no more than two dwellings in the United Kingdom apart from their interest under the lease.

The paragraphing/ notation implies to me:

(2) (a), (b), (c) and (d) and within (d) (i), (ii) or (iii) - otherwise it would have been written as (a) to (f) with (d)(ii) being (e) and (d)(iii) being (f).

So the relevant tenant is the limited company that needs  to have the dwelling as the principle home, not own any other dwelling in the UK or owned no more than 2 other dwellings.

yes, agreed based on my current understanding, thanks