i am assuming that is only after the CAA has approved the aircraft becomes a permit type as opposed to the LAA requesting for particular types they deem appropriate?
Ish.
At the moment the association (BMAA tech office, or LAA Engineering) approves either the type or the individual aeroplane in principle, then issues a (Microlight) Airworthiness Approval Note to the CAA, who then issue the PtF.
The proposed change is I think that the PtF will now be issued directly by the BMAA or LAA, who'll presumably just inform CAA that they did so.
This won't change that CAA have the vote on what the BMAA or LAA *may* handle, and something with a current CofA and no orphan status is unlikely to come into their bailliwick any time soon.
I have to say, I think that you'll be lucky to get an Annual and ARC on a CofA C120 done for £1100. That may be the absolute minimum "if there's nothing wrong with it, no ADs due this year..." figure, but I'd be surprised if that happens. My minimum figure for a 1970s AA5 (I own one and part own another, maintained at two different places) is double that, and we seldom get near the minimum, very sadly.
G