The Leasehold Reform (Ground Rent) Act 2022 received Royal Assent on 8 February 2022.
When it comes into force, it will limit the ground rent payable on most new long residential leases in England and Wales.
Certain types of leases are excepted from the ground rent restrictions in the 2022 Act: business leases, statutory lease extensions of houses and flats, community housing leases and home finance plan leases.
From a recent announcement, the ground rent restrictions will come into force on 30 June 2022.
This means that for new developments of leasehold properties – flats and apartments (except in relation to retirement home leases), the ground rent should be zero for all new leases. Anyone signing a new lease in the next 2 months, the ground rent provisions in their lease should reflect the changes the legislation will bring in force on 30 June.
Oglethorpe Sturton and Gillibrand act for developers, as well as buyers on various types of new build properties. Our expertise covers a wide range of conveyancing transactions for residential, commercial and agricultural land and property. If you would like to speak to a member of the team, please call reception on 01524846846 or visit our website.