Understanding the Leaseholder Deed of Certificate: A Guide for Building Owners

30 April 2024 | Written by Innovus

Building Solutions

The Building Safety Act 2022 introduced a range of measures aimed at improving building safety standards and providing greater protection for leaseholders. One of the key provisions of this Act is the Leaseholder Deed of Certificate, a crucial document that qualifying leaseholders must complete to ensure they are not liable for potentially unaffordable costs associated with remediating certain building safety defects.

What is a Leaseholder Deed of Certificate?

The Leaseholder Deed of Certificate is a legal document that leaseholders of qualifying leases must submit to their landlord or building owner. Its primary purpose is to provide evidence that the leaseholder’s lease meets the criteria for protection against unaffordable remediation costs under the Building Safety Act 2022.

The Deed applies to qualifying leases, which are generally long leases of dwellings in relevant buildings. Relevant buildings are those that contain at least two dwellings and have specific fire or structural safety defects that require remediation work. These defects could include issues with cladding, fire safety doors, or structural problems that pose a risk to the building’s occupants.

Who Needs to Complete the Deed?

The obligation to complete the Leaseholder Deed of Certificate falls on qualifying leaseholders. A qualifying leaseholder is someone who holds a qualifying lease, which typically means a long lease of a residential property within a relevant building.

It’s important to note that shared ownership leases may also be considered qualifying leases, depending on the specific terms of the lease agreement. Leaseholders should carefully review their lease details and seek professional advice if they are unsure whether their lease qualifies.

Key Information Required

When completing the Leaseholder Deed of Certificate, leaseholders will need to provide several key pieces of information, including:

  1. Landlord/Building Owner details: The name and contact information of the landlord or building owner responsible for the relevant building.
  2. Address of the relevant building: The full address of the building containing the leaseholder’s property and the relevant defect(s).
  3. Details of the developer: Information about the company or individual who developed or constructed the relevant building.
  4. Evidence of the relevant defect(s): Documentation or reports that demonstrate the existence of the relevant fire or structural safety defect(s) in the building.

leaseholder deed of certificate advice

Costs and Time Limits

One of the primary objectives of the Leaseholder Deed of Certificate is to protect leaseholders from bearing unaffordable costs associated with remediating building safety defects. The Building Safety Act 2022 introduced measures to limit the financial burden on leaseholders and ensure that the costs of remediation work are fairly distributed.

It’s crucial for leaseholders to be aware of the time limit for submitting the Deed of Certificate. The cut-off date was February 14th, 2022, meaning that any qualifying leaseholder who had their lease in place before this date must complete and submit the Deed to their landlord or building owner.

While the specific costs of remediating safety defects can vary depending on the nature and extent of the work required, the Act aims to ensure that leaseholders are not subjected to excessive or unaffordable charges. Leaseholders should consult with their landlord, building owner, or seek professional advice to understand the potential costs and their rights under the Building Safety Act 2022.

Importance of Compliance

Failure to comply with the requirements of the Leaseholder Deed of Certificate can have significant consequences for leaseholders. Non-compliance may result in leaseholders being liable for the full costs of remediating building safety defects, which could be substantial and potentially unaffordable.

Landlords and building owners also play a crucial role in ensuring compliance with the Building Safety Act 2022 and the Leaseholder Deed of Certificate process. They are responsible for providing the necessary information and support to leaseholders, as well as ensuring that remediation work is carried out in a timely and compliant manner.

By completing the Leaseholder Deed of Certificate, leaseholders can protect their interests and ensure that their rights under the Building Safety Act 2022 are upheld. It is an essential step in safeguarding leaseholders from bearing the financial burden of remediating building safety defects that were not their fault.

How Innovus Can Help

At Innovus, we understand the complexities of the Building Safety Act 2022 and the importance of ensuring compliance with leaseholder protections. Our Building Safety Consultancy services are designed to assist leaseholders, landlords, and building owners in navigating the regulatory landscape and meeting their obligations under the Act.

Our team of experienced consultants can provide guidance and support throughout the Leaseholder Deed of Certificate process, including:

  • Assessing your property’s eligibility and determining if you qualify as a leaseholder under the Act
  • Assisting with gathering the required documentation and evidence of relevant defects
  • Reviewing and advising on the completion of the Deed of Certificate
  • Liaising with landlords, building owners, and other stakeholders to ensure a smooth and compliant process
  • Providing ongoing support and guidance as remediation work progresses

By partnering with Innovus, you can have peace of mind knowing that your rights and interests as a leaseholder are protected, and that you are fully compliant with the Building Safety Act 2022 and its associated regulations.

What’s next?

The Leaseholder Deed of Certificate is a critical component of the Building Safety Act 2022, designed to safeguard leaseholders from bearing unaffordable costs related to remediating building safety defects. By understanding the requirements, gathering the necessary information, and complying with the Deed of Certificate process, leaseholders can protect their financial interests and ensure their rights are upheld.

If you are a leaseholder in a relevant building or have concerns about building safety defects, don’t hesitate to contact Innovus. Our team of experts is here to guide you through the process and ensure that you are fully compliant with the Building Safety Act 2022.

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