Ground rent charges banned
Ground rent charges on new residential leases will be banned at the end of June.
The new law will also apply to retirement homes, when the ban will be extended in April 2023. The government said ground rents, which can run into hundreds of pounds a year, provide no clear service in return and can be set to escalate regularly, with a significant financial burden for leaseholders.
Leasehold Reform (Ground Rent) Act is the first of a two-part programme of legislation to reform the leasehold system.
Future measures include a new right for leaseholders to extend their leases to 990 years at zero ground rent and an online calculator to help find out how much it would cost to buy their freehold or extend their lease.
