Freehold: Insolvency
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the risks to leaseholders in circumstances where a freeholder becomes insolvent and building safety remediation costs remain outstanding or unfunded.
Answered by Samantha Dixon
The Department recognises the difficulties freeholder insolvency can cause for leaseholders, especially where building safety risks are present.
In 11m+ residential buildings, developers can still be held responsible via the developer remediation contract and both developers and former owners can be pursued through a remediation contribution order.
Government funding is provided for cladding remediation works and in some circumstances applications may be made for these funds even after a freeholder has become insolvent.
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