Leasehold Reform (Ground Rent) Act 2022
The Leasehold Reform (ground rent) Act 2022 came into force on 30th June 2022 and impacts ground rent charges for new long residential leasehold properties, effectively preventing them from being charged by freeholders of leasehold properties.
The new Act refers to regulated leases, which are residential leases for a house or flat granted after 30th June 2022, for more than 21 years and thus covered by the Act. There will be no requirement to pay ground rent or administrative lease related costs in relation to these regulated leases. There are a number of exceptions under the Act;
- Statutory lease extensions
- Existing leases
- Leases granted pursuant to contracts exchanged before 30 June 2022
- Certain financial products such as home finance leases
- Community housing leases
- Business leases defined by the Act as leases of commercial premises
In the case of informal (non-statutory) lease extensions for existing leaseholders the ground rent is restricted to zero. In the case of statutory lease extensions, the landlord is forced to reduce ground rent to a peppercorn for the lease term. Existing leaseholders not extended their leases could consider enquiring about a deed of variation regarding ground rent. Local authorities can impose fines up to £30,000 per lease, ground rent is required and payment not returned. As of April 2023 ground rent ban also applies to retirement homes.
Future measures may include the right for leaseholders to extend leases to 990 years at zero ground rent along with online tools to assist leaseholders in buying freehold rights or extended leases.
For further information visit Leasehold Reform (Ground Rent) Act 2022: Guidance for leaseholders, landlords and managing agents.
[edit] Related articles on Designing Buildings
- Assured shorthold tenancy.
- Betterment.
- Built to suit.
- Buy-to-let mortgage.
- Code of practice for letting and managing agents.
- Commonhold.
- Difference between assured shorthold tenancy and assured tenancy.
- Dilapidations.
- Excluded occupier.
- Freehold.
- Green lease.
- Ground rent.
- How to evict a tenant.
- Landlord.
- Landlord and Tenant Act.
- Lawyer.
- Lease Negotiations - Tenants Checklist.
- Leasehold.
- Leasehold covenants.
- Leasehold enfranchisement.
- Leasing a property - what you need to know.
- Licence for Alterations for Apartment.
- Meanwhile use.
- Occupier.
- Peppercorn rent.
- Property guardianship.
- Quantified demand.
- Rent-free period.
- Rent in administration.
- Rent review.
- Restrictive covenant.
- Reverse premium.
- Reversion.
- Right to manage.
- Sample retail lease.
- Scott schedule.
- Security of tenure for commercial leases.
- Semi.
- Service charge.
- Shared ownership.
- Short term lets.
- Subletting.
- Supersession.
- TA6 Property Information Form.
- Tenant.
- Types of building.
- Vacant possession.
- What is a mortgage?
Featured articles and news
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).