FUTURE BUYERS FREED FROM EXPENSIVE GROUND RENT BILLS!

The LRGRA 2022 (Leasehold Reform (Ground Rent) Act 2022) is the first in a series of proposed reforms relating to residential leasehold properties. It has been passed following widespread publicity about unfair ground rent increases and the pressure on the government to deal with onerous ground rents. Whilst the Act will be brought into force at different stages, the substantive provisions surrounding ground rent restrictions will be brought into force for most new long residential leases on 30 June 2022.

The LRGRA 2022 will limit the ground rent chargeable on most new long residential leases to one peppercorn per year, effectively
restricting ground rents to zero financial value.

More detailed guidance will be published in due course once the governed have introduced further regulations to deal with the new legislation. What this does show however is that there are more positive changes to come creating further savings for leaseholders.

If you have a query as to how this will effect a proposed leasehold purchase or how you need to deal with a lease extension, get in touch with our Property team today at sol@cockslloyd.co.uk