Hugely welcomed, but more to tackle - Comment on the Leasehold Reform (Ground Rent) Act 2022 as it comes into force today
30 June 2022
Dominic Danvers, Property Litigation Solicitor, CLG, says “The Leasehold Reform (Ground Rent) Act 2022 comes into force today for all new leases. It will mean that leaseholders will not be required to pay more than a peppercorn ground rent for those leases. This will be hugely welcomed, having been campaigned for over many years.
“While the Act will prevent escalating ground rent for new leases in the astronomical way that many have done to date, it still needs to go further to incorporate existing leases not just new ones. It is also possible for leaseholders to be caught out, for example if they opt for a voluntary lease extension (rather than a statutory one), the new Act will only apply from expiry of the original term.
“Getting rid of the loopholes and applying the Act to existing leases will of course present some legal challenges – which is why these have not been included - but this doesn’t mean that it shouldn’t be tackled. It is essential that steps are taken now for a peppercorn ground rent to be applied to all residential leases both existing and new.”
