Leaseholder Deed of Certificate
Two documents decide whether a leaseholder can be charged for historical building safety defects. Both come up when a flat in a taller block is sold.
Which Buildings This Applies To
The Building Safety Act 2022 limits what leaseholders can be charged for historical building safety defects. The protections apply in England to relevant buildings: generally, a self-contained building with at least two homes that is at least 11 metres high or has at least five storeys. Buildings the leaseholders own themselves, including many share of freehold blocks, buildings whose freehold the leaseholders have bought collectively, and commonhold buildings are excluded.
Within those buildings, the strongest protections belong to qualifying leases. In outline, a qualifying lease is a long lease of a single home with a service charge, granted before 14 February 2022 or a later extension or replacement of such a lease, where on that date the flat was the leaseholder's only or principal home or they owned no more than three UK homes in total, including this one. Below 11 metres and under five storeys, none of this applies.
The Leaseholder Deed of Certificate
The leaseholder deed of certificate is the leaseholder's statement of whether their lease qualifies. It records the facts as at 14 February 2022, such as where the leaseholder lived and how many homes they owned, and it is signed as a deed, so it carries legal weight.
The landlord, or its managing agent, must ask the leaseholder to complete one when it learns of a sale or a relevant defect, and a leaseholder can also provide one at any time. The LPE1 asks whether one has been given.
Returning it matters. A lease is treated as qualifying until the landlord has taken the steps the regulations require, which include a written request, at least eight weeks to reply and a reminder. If the deed is still not returned after that, the lease is treated as not qualifying, and the leaseholder can lose the stronger protections.
The Landlord's Certificate
The landlord's certificate is the landlord's side of the same exercise. It states whether the landlord, or a company associated with it, was responsible for the relevant defects, and whether the landlord's group met the Act's net worth test. If the landlord was responsible, no leaseholder can be charged for those defects. If the group met the net worth test, qualifying leaseholders cannot be charged.
A landlord has to provide it at set points, including within four weeks of being told that a leaseholder is selling, and must provide the supporting evidence with it. Copies of the deeds and certificates also have to go to any resident management company, right to manage company or manager for the building. If a landlord does not provide a compliant certificate when required, it is treated as responsible for the defects, so it cannot pass the costs of the remedial work on through the service charge.
What This Means When You Sell
In a relevant building, the buyer's solicitor will want both documents, because they show what the buyer could be asked to pay towards historical safety defects. A missing certificate can hold up the LPE1 and, with it, the sale.
For the buildings we manage, we request and hold the leaseholder deeds of certificate, deal with the landlord's certificate for the client, and include both in the management pack. If you are selling and do not know whether your building is a relevant building, ask us before the pack is ordered.
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Where We Do This
From our Plymouth office, across Devon, Cornwall and the wider South West. Each area page sets out the authority, the fire and rescue service and the local building stock.
Common Questions
What Is a Leaseholder Deed of Certificate?
A deed in which a leaseholder in a building of 11 metres or five storeys and above states whether their lease is a qualifying lease under the Building Safety Act 2022, which decides how far they are protected from the cost of historical safety defects.
What Is a Qualifying Lease?
Under the Building Safety Act 2022, broadly a long lease of a single home in a building at least 11 metres or five storeys high, with a service charge, granted before 14 February 2022 or extended or replaced since, where on that date the flat was the leaseholder's only or principal home or they owned no more than three UK homes in total. Qualifying leases get the strongest protection from historical defect costs.
Does My Building Need One?
Generally, only if it is a self-contained building in England with at least two homes that is at least 11 metres high or has at least five storeys. Buildings the leaseholders own themselves, including many share of freehold blocks, collectively enfranchised buildings and commonhold buildings are excluded.
What Is the Difference Between the Deed of Certificate and the Landlord's Certificate?
The deed of certificate is completed by the leaseholder and says whether their lease qualifies. The landlord's certificate is completed by the landlord and says whether it was responsible for the defects and whether its group met the Act's net worth test.
What Happens If a Landlord's Certificate Is Not Provided?
If a landlord does not provide a compliant landlord's certificate when required, it is treated as responsible for the defects, so it cannot pass the costs of the remedial work on through the service charge. The gap works against the landlord, not the leaseholder.
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