PART 4REMEDIATION OF CERTAIN DEFECTS

117Meaning of “qualifying lease”

(1)

For the purposes of section 116, a lease is a “qualifying lease” if—

(a)

it was granted before the relevant time,

(b)

it is a long lease of a single dwelling in a relevant building,

(c)

the tenant under the lease is liable to pay a service charge, and

(d)

at the relevant time there was a tenant under the lease who met at least one of the following conditions—

(i)

the dwelling was the tenant’s only or principal home,

(ii)

the tenant did not own any other dwelling in the United Kingdom, or

(iii)

the tenant owned no more than two dwellings in the United Kingdom apart from their interest under the lease.

(2)

But where a dwelling was at the relevant time let under two or more leases to which subsection (1)(b) and (c) apply, any of those leases which is superior to any of the other leases is not a qualifying lease.

(3)

The Welsh Ministers may by regulations make provision for circumstances in which the condition in subsection (1)(d) is to be treated as being met.

(4)

The Welsh Ministers may by regulations make provision for and in connection with treating a lease as a qualifying lease if—

(a)

it was granted at or after the relevant time,

(b)

it is a lease of a single dwelling in a relevant building,

(c)

the tenant under the lease is liable to pay a service charge,

(d)

it replaces—

(i)

one other lease that is a qualifying lease (whether under subsection (1) or regulations made under this section), or

(ii)

two or more leases, at least one of which is a qualifying lease (whether under subsection (1) or regulations made under this section), and

(e)

there is continuity in the property let.

(5)

Regulations under subsection (4) may make provision about the circumstances in which paragraphs (d) and (e) of that subsection are met.

(6)

For the purposes of this section—

(a)

“long lease” means a lease granted for a fixed term of more than 21 years from the date of the grant, whether or not it is (or may become) terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture or otherwise;

(b)

a person “owns” a dwelling in Wales, England or Northern Ireland if the person has a freehold interest in it or is a tenant under a long lease of it;

(c)

“the relevant time” means the beginning of 20 February 2026;

(d)

“service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985 (c. 70).