The Leasehold Reform (Ground Rent) Bill received Royal Assent in February 2022 and the Department for Levelling Up, Housing and Communities has now announced that the Government is planning to bring the Act into force on 30 June 2022, except for retirement properties (where the Act’s provisions will not apply before 1 April 2023).
This new Act applies to leasehold properties in England and Wales. It will restrict the ground rent on all completely new leases of residential property to a ‘peppercorn’ rent – i.e. zero.
Where an existing lease is extended as part of an agreed or voluntary renewal, the ground rent can continue during the remainder of the old lease, but the ground rent must be zero for any new period of time added to the lease.
Stonewater will of course be keeping a close eye on the Ground Rent Bill, and what it means for our customers. If you are considering extending your current lease with Stonewater, and want to know how the latest changes in Leasehold Reform may affect you, please check the latest Government Advice https://www.gov.uk/guidance or seek independent legal advice.