Building safety defects continue to create uncertainty for leaseholders and prospective buyers of flats. Issues such as unsafe cladding, inadequate fire-stopping and structural defects can lead to significant remediation costs, delays and difficulties when selling or remortgaging a property.
The proposed Remediation Bill seeks to address some of these concerns and support the remediation of unsafe buildings. However, it remains proposed legislation, and its wording may change during the parliamentary process.
Written by Jackie Lam, Solicitor
Why does remediation matter?
Following the Grenfell Tower tragedy, building safety became a major concern across the residential property sector. Investigations have identified various defects in some residential buildings, including issues relating to external wall systems, fire safety measures, compartmentation and structural integrity.
Remediation works can be costly and technically complex. They may involve specialist investigations, professional reports, approvals and extensive construction.
For leaseholders, the consequences can extend beyond the condition of the building. They may face uncertainty about service charges, future costs and the timing of remedial works. Unresolved safety issues may also lead buyers, valuers and mortgage lenders to request additional information.
How does the proposed Remediation Bill relate to the Building Safety Act 2022?
The Building Safety Act 2022 already provides protections for certain leaseholders in relation to historic building safety defects. However, those protections are subject to statutory conditions and do not apply in every case.
The position may depend on the building, the nature and date of the defect, the leaseholder’s circumstances and the way in which the relevant costs are being claimed.
The proposed Bill is intended to support a more structured and enforceable process. Depending on its final wording, it may introduce clearer obligations, deadlines or consequences for parties responsible for carrying out or funding remediation.
The exact effect of the legislation will depend on the final version of the Bill and any regulations or guidance made under it.
What should leaseholders do?
Leaseholders should obtain clear, written information from the freeholder or managing agent about:
- identified defects and relevant professional reports;
- proposed remediation works and their expected timetable;
- responsibility for carrying out and funding the works; and
- any current or anticipated service charge liability.
They should retain copies of all correspondence, notices and service charge demands. Before disputing or withholding payment, leaseholders should obtain appropriate advice, as non-payment may have serious consequences under the lease.
What should buyers consider?
A prospective buyer should investigate building safety issues before committing to a purchase. Relevant enquiries may include:
- the building’s height, construction and external wall system;
- whether the building has known or suspected defects;
- whether remediation works have started or are planned;
- who is responsible for funding the works;
- whether leaseholders may have to contribute; and
- whether the buyer’s mortgage lender has specific requirements.
The lease and management information should also be reviewed carefully, particularly the provisions dealing with service charges, repairs, insurance and recovery of costs.
Although the proposed Bill may improve certainty in the longer term, it should not be treated as a guarantee that a transaction will proceed without delay. Each property must be assessed based on the information available at the time.
How can Lisa’s Law assist?
The proposed Remediation Bill is part of the continuing development of the UK’s building safety framework. While its final effect remains to be seen, leaseholders and buyers should continue to obtain clear information and take advice on how the existing law applies to their circumstances.
Lisa’s Law can assist leaseholders and prospective buyers with related property enquiries, including reviewing lease provisions, considering remediation information, raising appropriate conveyancing enquiries and advising on issues that may affect a sale, purchase or remortgage. Please contact our property team if you require assistance with a property affected by building safety or remediation concerns.
Disclaimer: This article is provided for general information only and does not constitute legal advice. The Remediation Bill is currently proposed legislation, and its wording, scope and effect may change during the parliamentary process. Readers should obtain advice on their individual circumstances based on the law in force at the relevant time.
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