The 14 February 2022 Legal Qualifying Test
Under Section 119 of the Building Safety Act 2022, statutory financial protection is determined strictly by the property's ownership status as of midnight on 14 February 2022. A leaseholder qualifies if:
1. The building is a 'Relevant Building': It must be at least 11 metres in height or contain at least 5 storeys, and must not be a leaseholder-owned enfranchised building or commonhold.
2. The lease is a 'Relevant Lease': A long residential lease granted for more than 21 years before 14 February 2022.
3. Qualifying Purpose: On 14 February 2022, the dwelling was the leaseholder's only or principal home, OR the leaseholder owned no more than 3 UK residential dwellings in total.
Statutory Liability Caps: Qualifying vs Non-Qualifying
The Building Safety Act completely reorganizes historical building remediation liabilities:
• Cladding Remediation: All qualifying leaseholders pay £0. Freeholders and developers are legally prohibited from passing any cladding remediation costs to qualifying tenants through service charges.
• Non-Cladding Remediation (Compartmentation, fire doors, balconies): Strictly capped over a 10-year period based on property value.
| Property Value (14 Feb 2022) | Location | Cladding Liability | Maximum 10-Year Non-Cladding Cap |
|---|---|---|---|
| Under £175,000 | Any UK location | £0 (Statutory Protection) | £0 (Full Exemption) |
| Under £325,000 | Greater London | £0 (Statutory Protection) | £0 (Full Exemption) |
| £175k – £1m | Outside London | £0 (Statutory Protection) | £10,000 maximum |
| £325k – £1m | Greater London | £0 (Statutory Protection) | £15,000 maximum |
| £1m – £2m | Any UK location | £0 (Statutory Protection) | £50,000 maximum |
| Over £2,000,000 | Any UK location | £0 (Statutory Protection) | £100,000 maximum |
| Non-Qualifying Lease | Any UK location | Uncapped | Uncapped (Subject to lease terms) |
Does Qualifying Status Transfer to a Buyer?
Yes. Under secondary legislation accompanying the Building Safety Act, once a lease qualifies based on its 14 February 2022 status, that qualifying protection remains permanently attached to the lease.
When the property is sold, the new buyer automatically inherits qualifying leaseholder protections, provided the seller executes and provides a compliant Leaseholder Deed of Certificate.