New bill to address controversial leasehold ground rents

19 May 2021

The Leasehold Reform (Ground Rent) Bill has begun its journey through the House of Lords and is expected to come into law in the next few months. 
 
As expected, it restricts ground rents on new long residential leases to a peppercorn.  Most developers are familiar with this in the context of Help to Buy sales, but it will soon apply to all new flat sales. 
 
“New” will apply to the date of completion of the relevant plot lease, so it is possible for this to result in some plots on a site being caught whilst others are not.
 
There will be an exemption where contracts have already been exchanged when the Act comes into force, but we expect it to become the norm for plot buyers to demand no ground rents – even if the Act hasn’t yet come into force. 
 
Developers who have pre-sold their freehold investment will need to take advice on whether their pre-sale contract allows the grant of peppercorn plot leases.
 

Further reading

Is the Government covering up covid?

02/06/2023
Disclosure and the Covid Inquiry – a case for common sense or a case for Judicial Review?
Read more Read

The rise of Green Loans and Sustainability-Linked Loans

Blog
02/06/2023
Lenders who fund real estate projects under pressure how they contribute to sustainable living
Read more Read

‘Truly inspiring’ resident named Resident of the Month

Blog, News & PR
01/06/2023
The driving force behind a new fundraising campaign for research into Lobular Breast Cancer has been named the Horsham Resident of the Month for May.
Read more Read

Renters Reform Bill and Anti-Social Behaviour

Blog, Legal Updates
30/05/2023
The Government claims that the Renters Reform Bill will also introduce ‘more comprehensive possession grounds so landlords can still recover their property’ and make it easier to repossess where tenants are at fault, such as with anti-social behaviour (ASB).
Read more Read
  • Brighton - Jubilee St

    1 Jubilee Street

    Brighton

    East Sussex

    BN1 1GE

  • Brighton - Old Steine

    47 Old Steine

    Brighton

    East Sussex

    BN1 1NW

  • Gatwick

    Griffin House

    135 High Street

    Crawley

    West Sussex

    RH10 1DQ

  • Guildford

    Wonersh House

    The Guildway

    Old Portsmouth Road

    Guildford

    Surrey

    GU3 1LR

  • Hassocks

    32 Keymer Road

    Hassocks

    West Sussex

    BN6 8AL

  • Horsham

    3rd Floor

    Afon Building

    Worthing Road

    Horsham

    West Sussex

    RH12 1TL

  • London

    6 New Street Square

    New Fetter Lane

    London

    EC4A 3BF

  • Make an enquiry

    Make an enquiry

    Message

    Or head to our Contact us page