Have I read it correctly? Is US law firm Quinn Emanuel really offering a £180k annual starting salary to newly qualifieds at its London office, starting June 2024? Seriously? Wow! Just shows how competitive the London legal market is at the moment. Everyone wants the best. And they’re prepared to pay.
Sometimes it seems that everywhere we look we see hand-wringing operational failure, particularly when it comes to public services. Some of that failure is gross and inexcusable, like a post office management prepared to sacrifice the lives of individual sub-postmasters to cover up for a broken computer system. Or the administrative failings which contributed to the 2017 Grenfell Tower Block fire and the loss of 72 lives. Or the silencing of whistleblowers which allowed a young nurse to continue killing babies in her care.
More often, operational failings are down to blistering managerial incompetence. Like a police service which never quite seems to get it right. Where police officers are told to dance with protesters instead of clearing a way to enable key workers to get to their jobs. Police officers who took it upon themselves to strip a schoolgirl naked, without even consulting her parents, purely because a teacher imagined that she could smell cannabis. A schizophrenic who was free to walk the streets and kill three strangers because officers had not enforced an arrest warrant issued months earlier. A police service which has, it would seem, given up entirely on the types of crime which can affect all of us, like domestic burglary, shoplifting, car crime or Internet scams. Some incompetence is strategically more serious, like a UK defence capability which has been allowed to become so run down that if the worst happened, we would have to throw up our hands in surrender.
It is no better when we go to our local town centres, with so many former department stores standing empty and boarded up. That’s assuming that we can even get to our local town centre and park our car without having to navigate a ‘pay by phone’ parking system. And why is it every supermarket checkout we go to appears to be short-staffed? No wonder many of us now prefer to shop online.
If we get closer to home, we find a Land Registry now taking up to year to process even the most routine applications. It never used to be like that. And it seems that scarcely a month goes by without another local authority filing, or threatening to file, notice under section 114 of the Local Government Finance Act 1988, because it has not been able to manage its own finances. Though strangely such failings never seem to be anyone’s fault.
I’m sorry, I missed what you just said?
What about covid?
Amongst the fallout from covid was the biggest change in Britain’s working habits for a generation. I’m talking about working from home. It is something which had already been happening before covid, with the development of electronic systems for remote working and online meeting-platforms like Microsoft Teams. All that the covid lockdowns did was to force the pace. Home working for many professionals has now become the norm. Nothing wrong with that. It means the 2 hours we previously spent each day pushing our way through the morning and evening rush hours, can now be devoted to something productive, like our work. Except it didn’t quite work like that. Covid quickly became the ‘go to’ excuse for any substandard service. ‘It’s covid! Innit!’ Sometimes it just feels that no-one cares any more. Oh Well!
But perhaps you do care about your work. Perhaps you want to be part of an in-house team that does its best for its corporate client and the wider public who pays its salaries. A team that makes the best use of the resources available to it, limited as they may be. The good news is that you are not alone. There are thousands of us out there
Getting Into Management – Your Chance to Make a Difference
Here, we are talking about middle management. You are the captain leading your troop, not the general sitting in your oak-panelled office far away from battle. If you work within a large legal department there will always be management opportunities arising from time to time, many of which may not be permanent. Some of these temporary management opportunities might be planned, such as someone going on maternity leave. Or it could be sudden and unplanned, like the chief executive who fell out of a tree. Yes – it really happened!
Going into management doesn’t just look good on a CV. Leadership is a valuable life skill. It is your opportunity to make a difference. To put your own ideas into effect. To make the changes, which you always wanted to make but never had the seniority to implement. To create the team you want to create. To re-set those client relationships which had previously become soured.
In practice most corporate management is a combination of administration and leadership. But it is down to you, how much time you spend dealing with the administrative chores and how much effort you put into leadership.
In the context of administration, there are the endless staff-appraisals and half-year appraisals; attendance at management team meetings; and recruitment, both temporary and permanent. Management styles vary in how much time is devoted to administrative tasks compared with leadership. But whatever happens, the time is spent dealing with those administrative tasks should not balloon to the exclusion of everything else. And even those administrative tasks can provide opportunities for you to demonstrate good leadership. So what makes a good manager? Here are some suggestions:
You look, act and sound like a manager. One of the first things which you might notice when you step into management is that it changes the way other people react to you. Not only the staff reporting to you. But other people as well. You are no longer one of the guys. You are the face of authority. It has to be like that, otherwise you would not be able to deal with the difficult things, like managing under-performance. Whether or not your team like you, you have to be able to command their respect.
You do your best to create an environment in which your staff are able to work efficiently. It is about making sure that they have the best systems within which they do their work and that those systems work as well as they can. Any distractions from productive work are kept to a minimum. Whilst convening staff meetings are an essential part of management, they must be kept to the business in hand. As you are leading the meeting, it is your job to keep discussion focused on the agenda. To brief the team on the things they need to be briefed and to provide an opportunity for constructive feedback. It should not degenerate into a grumble-session or a social chit-chat, more suited to a coffee-break. And try to keep it to the time you have allocated for it. Because all staff-meetings mean that there is less time for staff to do their chargeable-work. So don’t blame them when the monthly figures come in below target. There is no law that says that the meeting scheduled for 2 hours has to last for 2 hours, if you can get through the core business in 30 minutes. Remember that everyone’s time has a value. And remember that every awayday spent out of the office, ‘bonding’ with flipcharts, has a hidden cost above the tea and biscuits and hire of the venue. Can your team really afford to lose a day’s revenue? And here are two little secrets. The first is that some staff love awaydays, particularly if there are quizzes and cake-competitions. But most staff only go along because your senior management has told them to. Wouldn’t they rather be doing their jobs? The second little secret is that when the biggest multi-nationals organise awaydays for their staff, they usually do so over the course of a long weekend. But astonishingly, no one ever complains or demands time in lieu. Why? Would you complain about being given a free all-inclusive weekend at one of the UK’s top golfing-hotels – even if you don’t like golf?
The focus of your team is always outwards towards service delivery and not inwards towards itself. If your team does not deliver for its clients, what is the point of its existence? Let somebody else do the navel-gazing.
You take the trouble to know everything that is going on in your team. Like Lord Alan Sugar, you know every nut and bolt in your team’s product. This is not micro-management. It is about being alert to potential problems before they become a crisis. Electronic case-management systems now make it easy for managers to discreetly dip in and out of individual case files, just to make sure that everything is proceeding as it should, and without those difficult face-to-face meetings with your reportees.
You are clear in your communications with your team so that they know exactly what they are asked to do and that there is no scope for misunderstandings.
Your clients have confidence that you will look after their interests. Even the grumpiest client. They know that you are on their side. That they can turn to you if they have any concerns and receive a prompt and constructive response. You are their troubleshooter. In fact, one of the first things a new manager has to do is to try to repair those client-relationships which previously had not been quite as good as they should have been. You know what your client’s expectations are. It is for you to make sure that those expectations are being met, so that their work keeps coming through.
You lead from the front. You know the job well enough to guide individual members of your team who seek practical advice on operational decisions or solutions to problems. You don’t bat questions back with glib put-downs like, ‘have you tried looking it up?’ Unless you go further by pointing to a suggested source of reference. You take responsibility for your team’s performance. You are not like the chief of police who has never seriously walked the streets and defaults into hand-wringing mode whenever there is a major operational failure which they could have prevented. That chief of police would rather let subordinate officers ‘hang out to dry’ than take any personal criticism. It is the management culture which allowed the Rochdale child abuse scandal to happen. In practical terms, leading from the front can mean that you sit with your team instead of in the glass office at the end of the corridor.
You recognise talent within your team and are able to ‘grow’ individual members of your team. It is not just about having people with the right experience, it is also about recognizing someone’s potential to gain that experience and become a more valuable member of your team. It is about presenting those staff with assignments which will stretch their potential to the limit. One of the advantages of a ‘dip in-dip out’ electronic case management system, is that, like a dual control motor vehicle, you can safely delegate such tasks, knowing that it only takes a moment to take back control if there is a hint that something is about to go wrong.
You are your team’s ambassador. You provide the interface between clients and individual members of your team. You are the person clients will come to the moment they have concerns about the way your team is dealing with their work. If you’re not able to respond quickly and positively to those client-concerns, they may simply take their work away and outsource. Conversely, a job well done, can lead to more were coming through from that particular client including, possibly, entirely new streams of work. You are also someone who is able to repair client-relationships which may have previously become damaged before you even begun managing the team. So you are someone who takes the time and trouble to talk to your clients and to understand their expectations and future work-requirements as well as explaining to them what legal services your team is able to offer over and above what it is already providing to that client.
If the bulk of your team’s work is repetitive volume work, take a tip from Henry Ford. Install a conveyor belt. Metaphorically speaking of course. It means breaking down each volume transaction into a series of repetitive tasks spread between a team of fee earners at varying levels. So someone will be responsible for reviewing the instructions, opening up the file, and downloading land registry documentation and other key information, as well as formerly acknowledging those instructions. Someone more senior will review the land-title and identify any issues. Someone will prepare the initial documentation, based on the standard template, and then issue it. An experienced conveyancer will deal with the exchange of contracts and bring the transaction to completion, including preparation of the completion statement. Someone else will deal with the post-completion work, including submission of the land transaction return, where applicable, and registration formalities. Finally, someone will report back formally to the client regarding the transaction, as completed, with any matters which need to be flagged up for the future. And of course, you will allocate a time-slot for each task. Oh! And don’t forget ‘quality control.’
You do whatever is necessary to ensure, in terms of cost, speed of turnaround, and in the quality of the work, that what your team can deliver matches favourably with anything which the client would receive if they outsourced their work to someone else. In other words, your benchmark should be that of a commercial firm of similar size, expertise and resource.
Fire Safety Law: A Practical Guide for Leaseholders, Building-Owners and Conveyancers
Rolling Update detailing changes to Fire Safety Law as regards high-rise residential buildings – Updated to June 2023
Bruce&Holly
This rolling update has been further updated to include later provisions of the Building Safety Act 2022 brought into force on 6 April, 2023 as result of the Building Society Act 2022 (Commencement No.4 and Transitional Provisions) Regulations. But first, we recap on Leaseholder Deeds of Certificate and Landlord Certificates.
The Leaseholder Deed of Certificate
The Landlord Certificate
These two legal documents are now key to the protections which Schedule 8 of the Building Safety Act 2022 offers to high-rise residential leaseholders against the costs of remediating defective cladding and other non-cladding related safety-issues. The two documents make critical reading for any high-rise residential leaseholder, building-owner, conveyancer or managing agent.
This rolling update is intended as a companion to Fire Safety Law: a Practical Guide for Leaseholders, Building-Owners and Conveyancers, which is published through Taylor and Francis and went on general release in September 2022. That book is as up-to-date as it can be in terms of new fire-safety law which has evolved to implement recommendations flowing out of the Grenfell Inquiry. That law is still a work-in-progress and it is intended that this rolling update will chart legal changes, going forward. The book itself explains the structure of modern fire-safety law with particular reference to multi-occupied residential buildings. This rolling update will keep you alerted to new Fire-Safety legislation going forward.
See below for 20% discount
We start by offering you a 20% discount on the recommended retail price of the Fire Safety Law: a Practical Guide for Leaseholders, Building-owners and Conveyancers together with a link to the Routledge website. Typing in discount-code FLA22 will enable you to purchase the book directly from Routledge at the advertised discount.
In our October 2022 Update we focussed the protections which Schedule 8 of the Building Safety Act 2022 now offers to high-rise residential leaseholders against the costs of replacing defective cladding as well as other non-cladding fire-risks, where those defects arose either during the initial construction of the building within the previous 30 years or during a later refurbishment of the building. In this update we summarise the provisions which came into force this April just gone.
Disclaimer
This bulletin contains no more than our interpretation of some very-complex legislation and associated government guidance which is intended to protect qualifying residential-leaseholders against the future cost of remediation work to replace defective-cladding as well as associated non-cladding-remediation. We cannot guarantee that a court or tribunal would see things in exactly the same way. It is therefore important that every conveyancer takes the time to read the legislation and relies on their own professional judgment as to the advice which they need to give their leaseholder or prospective-leaseholder client. Likewise, if you are a leaseholder or someone responsible for the management of a multi-occupied residential building, it is important that you take your own independent legal advice before acting on any of the information contained within this bulletin.
Schedule 8 of the Building Safety Act 2022 (remediation-costs under qualifying leases etc)
Warning. Existing Schedule 8 protections (see below) may be lost when a qualifying lease is later extended under the Leasehold Reform Housing and Urban Development Act 1993. This is because a statutory lease extension operates in law as a surrender and re-grant of the existing lease, which falls away. If the extended lease was not already in existence on the reference date of 14th February 2022, existing Schedule 8 protections will not be carried forward. The Government is aware of the issue and has promised to legislate.
Our starting point has to be Schedule 8 which sets out the framework of a new regime to protect certain residential leaseholders against the cost of removing and replacing defective cladding as well as in relation to any non-cladding fire-risk. Sitting beneath Schedule 8 are the Building Safety (Leaseholder Protections)(England)Regulations 2022 and the Building Safety (Leaseholder Protections Information etc)(England)Regulations 2022, which, together, put in place the administrative processes needed to determine which residential leaseholders qualify for such protection and which leaseholders enjoy more limited protection.
Schedule 8 does not give blanket protection to all high-rise residential leaseholders against the cost of remedial work either as regards defective cladding or other non-cladding related fire-risk. The protection Schedule 8 offers is selective between different leaseholders either as regards the level of protection which is offered, or whether they are protected at all. The owner of a ‘qualifying lease’ will be fully protected against the costs of replacing of defective cladding if the defect arose either during initial construction the building or during a later refurbishment. But it will not cover a fire-risk resulting from later wear-and tear which was not attributable to any defective installation.
For non-cladding fire-risk, whether a protected leaseholder enjoys either full or partial protection against the costs of remediation will depend on other factors, including whether the ground-landlord could in any way be regarded as responsible for the non-cladding defect or if the corporate-landlord is considered to have sufficient financial net-worth to shoulder the burden of such costs. Even the owners of leases which are not qualifying leases may be exonerated from the liability to meet remediation costs in circumstances where responsibility for the original defect can properly be placed at the door of the ground landlord.
But even if the fire-risk remediation-costs cannot be placed at the door of the individual leaseholder, someone still has to pay for it. And that someone will be the ground-landlord, if they are still around and are able to pay for it. Even if that ground-landlord filed for insolvency, leaseholders can still look to any associated company which is still in existence, to take that liability. But the ability to pass remediation liabilities back to a ground-landlord, may be of little help to those leaseholders who are collectively their own landlord through a freehold management company. For those leaseholders, another source of funds to carry out the required remediation, will be a government grant.
The administrative complication for anyone collecting service charges in a high-rise residential building is to know which of the leases are ‘qualifying’ and which leases are not-qualifying, and to produce two sets of service charge demands for each class of leaseholder. So who is a ‘qualifying leaseholder’ and how is the managing-agent to determine who qualifies for special-protection and who does not? It is the Building Safety (Leaseholder Protections)(England) Regulations 2002 and the associated Information Regulations which now provide the documentary evidence to determine who is protected and who is not.
Who is a Qualifying leaseholder?
The reference date for determining which leases qualify for the fullest protection under Schedule 8 of the Building Safety Act 2022 is 14th February 2022. If a lease was a qualifying lease on 14 February, 2022, it will forevermore remain a qualifying lease carrying the fullest statutory protections against remediation-costs under Schedule 8 of the Building Safety Act 2022. If a lease was not a qualifying lease on 14 February, 2022, it will never become a qualifying lease. It also follows that no lease granted after 14 February, 2022 can ever qualify for the fullest protection under Schedule 8.
To have qualified for Schedule 8 protection on 14 February, 2022, the flat must have been situated within a block of flats at least 11 metres high or with at least five storeys (a ‘relevant builing’). On 14 February, 2022, that flat must either have been in owner-occupation or, if not in owner-occupation, be owned by someone who did not own more than three UK properties in total. So it means that some small buy-to-let landlords, including possibly corporate landlords, will qualify for protection if, on 14 February, 2022, if they did not own more than three UK Properties in total.
How does the owner of a qualifying lease evidence its protected status?
The only way in which the owner of a flat can properly evidence the fact that their lease was qualifying on 14 February 2022 is by completing and delivering to the ground-landlord a ‘Leaseholder Deed of Certificate’ in the form set out in the schedule to the Building Safety (Leaseholder ProtectionsInformation etc) England Regulations 2022, which took effect 21 July, 2022.
As its name suggests, this document has to be executed as a deed. That is to say, it must be signed by the leaseholder in the presence of a witness, who must also sign the document and provide their own full name and address. A Leaseholder Deed of Certificate maybe provided by the leaseholder at any time but must be provided at the landlord’s request, failing which the landlord will be entitled to assume that the lease is not-qualifying. In other words, the leaseholder may lose their Schedule 8 protection if they fail to provide a Deed of Certificate when asked to do so.
Providing a Leaseholder Deed of Certificate is, for all practical purposes, a self-certification exercise in which the leaseholder answers a number questions enabling the landlord to assess whether the particular lease qualifies or not. The questions include: whether the flat was owner/occupied on 14 February, 2022; if the flat was not owner/occupied, whether the leaseholder owned more than two other properties in the UK; the price at which the flat was last sold before 14th February 2022; whether it is a shared ownership lease and, if so, the total share owned by the leaseholder as at 14 February, 2022. As well as answering the questions, the leaseholder must also provide documentary evidence supporting the answers provided in the document.
A consequence of failing to provide a Deed of Certificate when asked to do so is that the ground-landlord may thereafter assume that the lease is not protected, when carrying out its service-charge calculations. In other words, the protected status of the lease could be lost. Where the leaseholder completing a Deed of Certificate was not the owner of the flat on 14 February, 2022 and does not already have the required information, it is then incumbent on the current leaseholder to make enquiries of the former leaseholder to establish the qualifying status of the flat on 14 February 2022.
It is also incumbent on the leaseholder to make enquiries to establish the price at which the flat was last sold before 14th February 2022 and, where it is possible to do so, to evidence that price from Land Registry records. A Deed of Certificate is also an important title document as it is needed to establish the qualifying status of a flat as at 14 February, 2022. It is therefore critical that a leaseholder keeps a copy of the certificate provided and that the landlord’s receipt of that certificate is acknowledged, for the record. Anyone acting on the purchase of a flat post 14th February 2022 will need to ask for a copy of the Deed of Certificate evidencing the protected status of the lease, or not, as the case may be.
What protections does Qualifying Status offer?
A qualifying leaseholder is protected completely against the costs of remediating flammable cladding.
Both qualifying and non-qualifying leaseholders are protected against the costs of remediating both cladding and non-cladding related fire-risk, in circumstances where the ground-landlord was also the developer of the building or carried out a later refurbishment or was responsible for commissioning that work within the previous 30 years.
A qualifying leaseholder has complete protection against the costs of remediating both cladding and a non-cladding fire-risk in circumstances where on 14 February, 2022 the ground-landlord had a net-worth of more than two million pounds per relevant building.
A qualifying leaseholder has limited protection against the cost of remediating non-cladding safety-defects in circumstances where the ground-landlord’s net-worth per relevant building on 14 February, 2022 was less than two million pounds. In those circumstances, each qualifying residential leaseholder can be required to contribute a capped amount of £15,000 in Greater London and £10,000 elsewhere. That cap is set at Zero for properties worth less than £325,000 in London or £175,000 elsewhere. For properties worth more than one million pounds, the cap is £50,000. If the property is worth over two million pounds, the cap is £100,000. There are also special rules for apportioning liabilities in shared ownership properties. In all cases payment of the capped costs can be spread over 10 years.
The Landlord Certificate
If it is the leaseholder’s Deed of Certificate which evidences whether a lease is a qualifying lease for the purposes of Schedule 8 of the Building Safety Act 2022, it is the Landlord Certificate which contains the information needed to calculate how much the landlord is entitled to charge for building-safety works. The ground-landlord must provide the leaseholder with a Landlord Certificate in any of the following circumstances:
When they want to pass on any remediation-costs on to a leaseholder through the service-charge.
Within four weeks from receiving notification from a leaseholder that their interest is to be sold.
Within four weeks of the landlord becoming aware of a relevant defect which was not covered by a previous Landlord Certificate.
Within four weeks of the leaseholder requesting a Landlord Certificate.
Information to be contained in the Landlord Certificate includes: the name and address of the relevant landlord on 14 February, 2022; the name and address of the current landlord; names and addresses of any superior relevant landlords; information requiring the net-worth of the landlord on 14 February, 2022; questions as to whether the landlord was in any way responsible for the relevant defect or the commissioning of that work; works previously taken to remedy relevant defects and amounts paid for that work. The Landlord Certificate has to be set out in the pro forma attached to the Building Safety (Leaseholder Protection)(England)Regulations 2022.
Dealing with Default
Building-owners are under an obligation to make their buildings safe, including fixing historical building safety-defects. The way for leaseholders to enforce that obligation is by applying to a First Tier Tribunal for a remediation order or a remediation contribution order. Failure on the part of the ground-landlord to comply with either is enforceable through the county court.
Where the Building Safety Act protections do not apply
To buildings of a height which is less than 11 metres or five storeys.
Where the defect was not a result of the initial construction of a building or later adaption or refurbishment.
To disrepair which is not related to building-safety (which is defined a either as a fire-risk or something affecting the stability of the building).
Warning. Existing Schedule 8 protections may be lost when a qualifying lease is later extended under the Leasehold Reform Housing and Urban Development Act 1993. This is because a statutory lease extension operates in law as a surrender and re-grant of the existing lease, which falls away. If the extended lease was not already in existence on the reference date of 14th February 2022, existing Schedule 8 protections will not be carried forward. The Government are aware of the issues and have promised to legislate.
Provisions of the Building Safety Act 2022 which came into force on 6 April, 2023
The registration scheme for higher-risk buildings opened in April 2023 and the Building Safety Registration of Higher-Risk Buildings and Review of Decisions (England) Regulations 2023 also came into force on 6 April, 2023 and state the information which must be contained in registration applications.
Provisions coming into force in April 2023 relating to higher-rise buildings include the following definitions:
A higher-risk building is ‘occupied’ if there are residents of more than one residential unit and the building.
An ‘accountable person’ is someone who is the legal owner of any of the common-parts of the building or has a repair obligation in relation to those common-parts. There may be more than one accountable person for a particular building.
The ‘principal accountable person’ is the legal owner of the structure or exterior of the building or is the person who has a repair obligation in relation to those parts of the building. Where there is a dispute as to whom is the accountable person or principal accountable person in relation to part or parts of a higher-risk building, an interested person can apply under section 75 of the Act, to a tribunal to determine who are the accountable persons or principal accountable person and for which areas they are responsible. The definition of an interested person includes the building safety regulator; the legal owner of the common-parts or someone who has a repairing obligation to repair the common-parts.
Also published are the Higher-Risk Buildings Key Building Information etc (England) Regulations 2023 requiring the principal accountable person to provide the building information to the building-safety regulator within 28 days of registration of an occupied higher-risk building. Such key information to be provided to the regulator within 28 days must include:
* Whether the higher-risk building has any ancillary building and whether that ancillary building is also higher-risk;
* The principal use of the higher-risk building as well as any ancillary building; any outbuilding or any storey below ground level. An ‘outbuilding’ means any permanent or temporary building, whether or not attached to the higher-risk building but not physically forming part of it and which is used for purposes incidental to the enjoyment of the higher-risk building.
* The ‘use’ of the building by reference to prescribed classifications, namely: residential; residential-institutional; residential-other; office; shop and commercial; assembly and recreation; industrial; or storage and other non-residential. To interpret these categories, reference must be had to Table 0.1 Classification of purpose groups of Approved Document B (Fire-Safety) volume 1 Dwellings (2019 edition incorporating 2020 and 2022 amendments) that came into force on 1 December, 2022.
* The materials used in the construction of the external wall as well as associated insulation. Also details of the main material used in the composition of any part of the roof that provides a waterproof covering and whether there is a separate layer of roof-insulation and whether the roof plane is pitched or flat or a combination of both.
* The main material used in the structure of the higher-risk building and the type of structural design the building has in order to comply with Part A (Structure) of Schedule 1 to the Building Regulations 2010.
* The number of storeys below ground level. The number of staircases and how many of those staircases serve, as part of the same flight of stairs, the storey at ground-level and every storey about it.
* The type of energy supply to the higher-risk building and the type of energy storage system.
* A description of the type of evacuation strategy that is in place for the higher-risk building and a list of the fire and smoke control equipment within the building, save that provided by an individual resident for their own use, and where, within the building, that equipment is located.
As well as the limitations on service charges contained in Schedule 8 of the Act, other provisions of the Act make amendments to landlord and tenant legislation governing the payment of service charges by lessees of residential parts of buildings. The 4th Commencement Order brought into force some of these provisions. This includes a new provision implied into a residential lease of more than 7 years containing service charges, requiring the tenants to contribute towards the cost of building safety measures taken by the landlord, if they are the accountable person, or by the superior landlord, if they are the accountable person for the building. Such building safety measures are defined and restricted to the following steps:
* applying for registration of a higher-risk building;
* applying for or displaying the building assessment certificate;
* assessing building safety risks;
* taking reasonable steps to prevent building safety risks but not the cost of carrying out works to do so;
* preparing and revising the safety case report;
* notifying the regulator of a safety case report;
* establishing and operating a mandatory occurrence reporting system for giving information to the accountable person to provide to the regulator;
* keeping information and documents as prescribed by secondary legislation about higher-risk buildings;
* complying with duties to prepare a residents’ engagement strategy and operating a system to investigate complaints; and
* serving notice to access a resident’s premises to determine whether they have breached any of the duties which they owe under the 2022 Act and serving a contravention notice in respect of any breach.
Building Safety Costs include associated legal and professional fees as well as fees payable to the building safety regulator and management costs. Any lease-covenant which seeks to modify these implied terms has no effect because it is not possible to contract out of these provisions. However recoverable building safety costs cannot include penalties, save where the tenants own or run the building as a result of collectively purchasing the freehold or accepting an offer of first refusal or where the tenants manage the building through a right-to-manage company.
One provision which has yet to be brought into force, save for the making of regulations, is Section 133 of the Building Safety Act 2022, which applies to buildings containing at least two dwellings and which are at least 11 metres high or have at least five storeys, except where the building is collectively owned by the leaseholders. When it is brought into force, section 133 will require landlords carrying out certain remediation work to do the following:
* take reasonable steps to ascertain whether any grant is payable in respect of the remediation works and if so, to obtain the grant;
* take reasonable steps to consider whether any contribution to remediation works is due from a third party and if so, to obtain the money from the third parties; and
* take prescribed steps relating to any other prescribed kind of funding.
Once section 133 is brought into force, such steps can be taken before or after the remediation works are carried out. However if such steps are not taken, the leaseholder can make application that all or part of the remediation costs incurred by a landlord are not reasonable and not payable by the leaseholder through the service-charge. A government consultation titled “Alternative Cost Recovery for Remediation Works: Consultation on Proposals to make Regulations and Statutory Guidance”, concerning the statutory guidance and policy proposals for the secondary legislation which would sit behind Section 133 closed on 31 March, 2023 and the government’s response to that consultation is awaited.
For more information visit the government’s Building and Fire-Safety Hub.
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More than 90% of contested cases settle before they get to trial. But the impossible cases to settle are the neighbour disputes where the parties hate each other so much that they can’t even speak. In 2012 John Edwards and Mary Kendrick had to pay out tens of thousands of pounds to cover the costs of neighbours Stephen and Barbara Evans after they wrongly took down the Evans’ new fence, which they said was sited in the wrong place. But the prize goes to Belgravia residents Hameed and Imran Faidi whom in 2009 incurred a £140,000 legal bill after pursuing to the Court of Appeal their complaint that they were disturbed by the sound of high heels tap tap tapping on the £100,000 oak floor of the upstairs flat …..
Extracted from Legal Profession Is it for you? (V. Charles Ward)