Government has taken action on resolving lending challenges that prevent many leaseholders in flats from selling and moving. On 15 July 2022 UK Finance, the Buildings Societies Association (BSA) and the Royal Institution of Chartered Surveyors (RICS) issued a joint statement. It clarified how mortgage lending on properties impacted by building safety issues will be able to change as a result of the Building Safety Act 2022 and, specifically, the subsequent leaseholder protections.
The six largest mortgage lenders: Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest and Santander have confirmed that they will now lend on buildings that:
- will be remediated by the developers that built them or are in a government-funded remediation scheme; or
- where leaseholders are covered by the new leaseholder protections.
This is a significant step forward and will enable thousands of leaseholders in homes with fire-safety issues to move on with their lives.
To help you understand your rights and whether you qualify for leaseholder protections, the Government has produced a Leaseholder Protections Checker and detailed guidance. The Checker uses information from leaseholders to work out the maximum amount they may be charged under the new protections in the Building Safety Act.
Those that the protections apply to will need to complete and submit a leaseholder Deed of Certificate to their freeholder who will confirm if they have to pay any money or not.
More information you might find useful:
- What are the leaseholder protections in the Building Safety Act 2022?
- More Frequently Asked Questions on Fire safety
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