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
Awe-inspiring medieval great barns.
Registered building inspectors
Building types and conflicts of interest updates explaineed.
Engineering services still struggle with labour shortages
According to latest quarterly services survey of the sector.
Infrastructure that connect the physical and digital domains.
Harnessing robotics and AI in challenging environments
The key to nuclear decommissioning and fusion engineering.
BSRIA announces Lisa Ashworth as new CEO
Tasked with furthering BSRIA’s impressive growth ambitions.
Public buildings get half a million energy efficiency boost
£557 million to switch to cleaner heating and save on energy.
CIOB launches pre-election manifesto
Outlining potential future policies for the next government.
Grenfell Tower Inquiry announcement
Phase 2 hearings come to a close and the final report due in September.
Progress from Parts L, F and O: A whitepaper, one year on.
A replicated study to understand the opinion of practitioners.
ECA announces new president 2024
Electrical engineer and business leader Stuart Smith.
A distinct type of countryside that should be celebrated.
Should Part O be extended to existing buildings?
EAC brands heatwave adaptation a missed opportunity.
Definition of Statutory in workplace and facilities management
Established by IWFM, BESA, CIBSE and BSRIA.
Tackling the transition from traditional heating systems
59% lack the necessary information and confidence to switch.
The general election and the construction industry
As PM, Rishi Sunak announces July 4 date for an election.