Schedule 8: Remediation costs under qualifying leases Paragraph 3: No service charge payable if landlord meets contribution condition Effect
Paragraph 3 sets out that a service charge is not payable under a qualifying lease if the relevant landlord meets the contribution condition.
	Sub-paragraph (1) sets out that no service charge is payable under a qualifying lease (to which see section 119) in respect of a relevant measure (to which see paragraph 1) if the person that was the landlord under the lease on 14 February 2022 ("the relevant landlord") met the contribution condition. "The relevant landlord" is defined as the landlord under the lease at the qualifying time.
	Sub-paragraph (2) sets out the contribution condition. The contribution condition is that the landlord group’s net worth at the qualifying time was at least N × £2,000,000.
	Sub-paragraph (4)(a) defines "the landlord group". The landlord group is the relevant landlord and any person associated with it, where "associated" has the meaning given in section 121.
	N is defined at sub-paragraph (2) as the total number of relevant buildings held by the landlord and its group. A "relevant building" is defined in section 117 as a multi-occupied residential building which is at least 11 metres tall or has at least five storeys. Sub-paragraph (3) sets out that a relevant building counts as being part of the landlord’s group if a member of the landlord’s group was, on 14 February 2022, a landlord for that building. This means that to calculate N, the landlord group would first be defined by identifying all companies which are associated with the landlord. N would be the total number of relevant buildings owned by all companies within the landlord group.
	Sub-paragraph (4)(b) allows the Secretary of State to make regulations setting out how the net worth of the landlord group is to be determined.
	Sub-paragraph (5) creates a power for the Secretary of State to amend, by regulations, the amount specified at sub-paragraph (2). This means that regulations made by the Secretary of State can change the reference to £2,000,000 to another amount.
	Sub-paragraph (6) sets out that the contribution condition does not apply in certain circumstances, determined by the identity of the relevant landlord at the qualifying time. The contribution condition does not apply if, at the qualifying time, the relevant landlord under the lease was either a social housing provider, a local authority, or a prescribed person. In this sub-paragraph, prescribed means set out in regulations made by the Secretary of State.