Leasehold: Repairs and Maintenance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps he is taking to ensure that residents’ management companies which hold the freehold on behalf of leaseholders are not treated as commercial freeholders for the purposes of remediation liability under building safety legislation.
Answered by Samantha Dixon
The leaseholder protections, which cap liability for paying towards certain remediation costs, do not apply to buildings where some or all the leaseholders have acquired the freehold.
RMCs who hold the freehold on behalf of leaseholders can use remediation contribution orders, introduced in the Building Safety Act to compel responsible entities to meet remediation costs.
We acknowledge the challenges resident management companies in this position face and my officials are looking at what more can be done to further protect these leaseholders facing uncapped costs.
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