Peppercorn ground rent for new lease flats
Parliament has just passed The Leasehold Reform (Ground Rent) Act 2022 which will impose a peppercorn ground rent in new leases of flats.
There will be a few exceptions such as shared ownership properties and in Islamic financing – they will continue to include rent. Ground rents will also be allowed to remain in flats where contracts were exchanged before the commencement date but completed after.
We are just waiting for the government to bring the Act into force before we know the commencement date but the Act says that it must be no later than 23rd April 2023 in the case of retirement flats.
We will keep you up to date as we find out more details.