Leasehold Reform Proposals

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It seems that ground rent for an existing lease can  continue  to  be demanded  to the  end of  the  lease period.    But  beyond   expiry date , the lease  agreement,  if continued,  must  be  under a  peppercorn ground rent.

 

So my question is withdrawn.

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1. The regulated lease is defined in the Act as one which meets all the following conditions:

 

A Regulated Lease must be a long lease of a single dwelling.

 

At its simplest this means long leases and not tenancies.

 

2. A prohibited rent is one that exceeds the permitted rent.

 

The general rule for a permitted rent is a peppercorn rent which means an annual rent of one peppercorn, having no financial value.

 

3. A Regulated Lease includes a lease granted by virtue of a variation which gives rise to a deemed surrender and regrant. This is the case even if no premium is payable for the variation.

 

4. A variation of a lease which affects the term or alters the demise is, by operation of law, a deemed surrender and regrant. How the deed is named is immaterial. We often see ‘deeds of variation which seek to change the term of the lease or demise granted, but these are in fact deeds of surrender and regrant and so, for the purposes of the Act, would be Regulated Leases caught by the Act. These could however, also be replacement leases (see section below).

 

Copied from : www.irwinmitchell.com/news-and-insights/newsandmedia/2022/february/understanding-the-leasehold-reform-act-2022

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From 30 June 2022, anyone buying a home on a new long lease will now be freed from these annual costs, helping homeowners manage their bills as they face cost of living increases.

 

Landlords will be banned from charging ground rent to future leaseholders, under a new law that will lead to fairer, more transparent homeownership for thousands of homebuyers, helping to level up opportunities for more people.

 

In preparation, many landlords have already reduced ground rent to zero for home buyers starting a new lease with them. Anyone preparing to sign a new lease on a home in the next two months should speak to their landlord to ensure their ground rent rate reflects the upcoming changes.

 

https://www.gov.uk/government/news/future-homebuyers-to-be-freed-from-expensive-ground-rent-bills-on-30-june

[Jeffrey Shaw 90]

The main thing is that none of these changes will be retroactive. All existing leases will be wholly unaffected.