The End of Ground Rents

Shilpa Mathuradas
A hand is holding a model house

Contact

Table of Contents

The Leasehold Reform (Ground Rent) Act 2022

It has been confirmed that The Leasehold Reform (Ground Rent) Act 2022 will come into force on 30th June 2022. It has been described by the Government as “part of the most significant changes to property law in a generation” and it will end ground rents in certain residential leases.

The Act applies to a “regulated lease” which is

  • A long lease of a single dwelling i.e. one granted for more than 21 years; and
  • Granted for a premium; and
  • After the 30th June 2022 or pursuant to a contract before that date; and
  • Is not an “excepted lease”.

A variation of the lease that would constitute a deemed surrender and re-grant of the lease, such as varying the extent of the land demised, extending the term may become a regulated lease and inadvertently be caught by the Act.

Excepted leases include certain business leases, a statutory lease extension of a house or flat, community housing leases and home finance plans leases.

The Act prevents a landlord under a regulated lease from requiring the tenant to make payment of a prohibited rent . The permitted rent is one peppercorn (i.e. zero ) per annum for regulated leases.

If a landlord demands a ground rent in breach of the Act and/or any payment is not returned within 28 days of receipt, Trading Standards Authorities have the power to impose fines of between £500 and £30,000 on the landlord.

Landlords will have to ensure they are familiar with the provisions in order to avoid being caught by the Act and inadvertently terminating their income stream by varying the lease. The Act is not retrospective so a lease entered into before the Act comes into force can still demand ground rent uncapped. It should also be noted that enforcement action can be taken against past and current landlords as well as persons acting on their behalf.

If you are a tenant and would like to discuss a leasehold property with a solicitor, please contact Shilpa Mathuradas or complete an online enquiry form.

Share this article

Contact Shilpa today

Email us Send us an email and we’ll get back to you






    • “Shilpa is knowledgeable and helpful. She is not afraid to challenge the boundaries for her clients, with excellent results.”

      Surveyor, London

    • “Shilpa combines the fierce representation of her clients’ best interests with the reasonable and constructive attitude that the Court always looks for in modern litigation. She has invaluable tactical awareness and skilfully handles complex and unusual cases and difficult opponents. As a barrister it is a pleasure to be instructed by her because you so often find that she has already taken the steps that you would have recommended had you been the client’s first point of contact. Her preparation of cases for trial is extremely thorough and helps ensure a positive result before you have set foot in Court.”

      Paul De La Piquerie, Selborne Chambers

    • “Thank you so much for your help. You were efficient, clear and advised me well in addition to being very pleasant to work with.”

      Susan Pogue, London

    • “I would like to sincerely thank you for all the hard work in assisting me to resolve my rather unusual and complicated case. Last 2 years were very stressful and intensive and often only your professional approach and personal realistic but positive attitude helped me not to give up. The uncertainty weight of more than 10 years is off my shoulders thanks to you and your colleagues. Thanks once again for your legal advice, time, and efforts”.

      Khrystyna, London

    • “Mostly I am grateful that Shilpa was understanding about the delays caused by my illnesses, and that she stuck with me and got a good deal for my tenancy. I did feel she fought to protect me and my rights. I appreciate that she kept me informed about progress, sending copies of emails with the other side and consulting me when necessary. I appreciated her eye for detail on legal matters and how she stood firm against a somewhat tricky opposing solicitor.”

      H Banks, London

    • “Shilpa was very thorough in the advice she provided and I was immediately put at ease with her involvement. She works hard to achieve the agreed objective and I very much appreciate her help in my matter.”

      Laurence Dumenil, London

    • “Shilpa was very diligent in her attention to detail and her pursuit of all necessary documentation; she showed great determination in the face of many requests by the other party’s solicitor to let certain things slide. She was thorough and professional which gave us a great sense of security.”

      Oliver Forder, Managing Director, Tank Form Limited

    • Shilpa really helped us take charge of the situation and helped resolve this property dispute. I would not hesitate to recommend her or the team to anyone in a similar situation.

      David A, Trustpilot Review

    • On first meeting Shilpa I was sure that she understood immediately my requirements, and was sympathetic both to my financial restraints and my emotional state. She achieved everything I asked of her and proved to be invaluable, professional and efficient

      P Ashcroft, Trustpilot Review

    • At every step Shilpa alleviated any concerns and stresses we had. Always fast to respond, always professional and super knowledgeable.

      Trustpilot review

    • Shilpa has helped us through some key property litigation matters (residential and commercial) since 2014 and has delivered on every occasion. One particular issue had kept us in a state of stress and tension for almost a decade and after getting in touch with Shilpa she was able to help us bring the matter to a peaceful and successful conclusion.

      Trustpilot review

    • I received a call from Shilpa Mathuradas a couple of hours after filling the enquiry form for a callback. She actively listened to my party wall concerns responding with gentle professionalism, answering my concerns, letting me know what is and is not possible and when best to bring in a solicitor. All this within 10 minutes. Excellent.

      Trustpilot review

    • If I had another reason to have to seek legal advice again, I wouldn’t hesitate to use Shilpa, and would recommend her to anybody who needed legal advice.

      Property Litigation client

    • Shilpa was professional, realistic, and unflappable. Shilpa managed to persuade a reluctant witness to come forward to support my case. She obviously knows her subject very well.

      Property Litigation client

    • I always had full confidence in Shilpa keeping my best interests at heart. I often didn’t understand the legal language, and she would follow this up with a phone call and patiently explain.

      Property Litigation client

    Property InsightsVIEW ALL

    1. building in london
      4.12.2024

      Security of Tenure

      What is security of tenure? Security of tenure is a statutory right granted by the Landlord and Tenant Act 1954. It...

      Read more
    2. london skyscraper
      4.12.2024

      Section 25 Notices

      Section 25 lease termination or renewal solicitors Section 25 notices signify the start of a commercial lease renewal or termination and thus...

      Read more
    3. mesher order house
      4.12.2024

      Section 21 Notices

      Guide to section 21 no-fault evictions Evicting tenants is never easy but under the no-fault eviction process, it should be less...

      Read more
    4. court of appeal
      3.12.2024

      Beneficial Interest in Property

      What does beneficial interest in property mean? A beneficial interest in property gives someone the right to share the benefits...

      Read more
    5. pembroke place, london
      18.11.2024

      Rent Repayment Orders

      Guidance for Rent Repayment Orders (RROs) for Landlords in the UK Rent Repayment Orders (RROs) are legal orders requiring a...

      Read more
    6. evicting a tenant
      13.11.2024

      Evicting a Tenant

      How to evict a tenant: Guidance for landlords Evicting tenants is rarely straight forward . It is a challenging and complex...

      Read more
    7. hampstead
      23.10.2024

      Buying and Selling Homes in Hampstead Garden Suburb

      Buying a house in Hampstead Garden Suburb While character, green spaces and the best of domestic architecture are big draws...

      Read more
    8. property litigation
      16.10.2024

      Managing Litigants: Court Powers and Defendant Options

      How can the court control a litigant? Most people wish to live out their lives without the need to face...

      Read more
    9. Boundary Disputes
      15.10.2024

      How do you determine a boundary?

      Whether the boundary dispute relates to a rear garden boundary or whether it relates to a driveway, the issue of...

      Read more
    10. residential property cornwall
      14.10.2024

      Can You Challenge a Restrictive Covenant?

      Challenging a restrictive covenant! Is it obsolete? It is well known that section 84(1) of the Law of Property Act 1925 allows...

      Read more
    11. house in cornwall
      12.8.2024

      Buying a Second Home

      Guide to buying a second home Almost three-quarters of a million households in England own a second home, according to...

      Read more
    12. notting hill coloured houses
      27.5.2024

      The Leasehold and Freehold Reform Bill 2024

      The Leasehold and Freehold Reform bill was one of the last pieces of legislation to make it through Parliament on...

      Read more
    13. 22.3.2024

      The Renters Reform Bill

      A Review of the Renters Reform Bill The 2019 Conservative Manifesto made a commitment to end “no fault evictions”. This has...

      Read more
    14. 22.3.2024

      Client successful in TOLATA proceedings

      The case related to proceedings under the Trusts of Land and Appointment of Trustees Act 1996 (“TOLATA”) in respect of joint...

      Read more
    15. 23.1.2024

      Freehold Service Charge Disputes

      Service Charges & the Leasehold and Freehold Reform Bill The Leasehold and Freehold Reform Bill was introduced to Parliament on 27...

      Read more
    16. 23.1.2024

      Will 2024 bring changes to the conveyancing process?

      The National Trading Standard Estate and Letting Agency Team (NTSELAT) has recently released new guidance relating to information on both...

      Read more
    17. 23.1.2024

      Know your Rights (of Way)

      If you have a question or concern over a right of way on your property, it is important to seek...

      Read more
    18. 23.1.2024

      Party Wall Etc Act 1996 v Common Law

      The case of Power & Kyson & Shah [2023] EWICA Civ 239 The case of Power & Kyson & Shah [2023] EWICA Civ 239...

      Read more
    19. Kings Speech
      8.11.2023

      Leasehold update: A new Leasehold and Freehold Bill...

      Yesterday, 7th November 2023, in the King’s Speech we heard the following: “My Ministers will bring forward a bill to...

      Read more
    20. crane
      27.10.2023

      The Building Safety Act 2022

      Introduction to the Building Safety Act 2022 This much awaited Building Safety Act 2022 was introduced into Parliament on 5th May 2021 as...

      Read more
    21. service charges
      22.8.2023

      Reasonableness of Service Charges

      Reasonableness of Service charges under the Landlord and Tenant Act 1985 It is well known that the relevant costs that a...

      Read more
    22. House-Finsbury-Park
      19.5.2023

      Declaration of Trust for Property

      If you are buying a property jointly, you may want to consider making a declaration of trust to record your...

      Read more
    23. kensington apartments
      11.5.2023

      Lease Extension Negligence

      What is Lease Extension Negligence? Solicitors Negligence when a Tenant claims a new lease of a flat under the Leasehold...

      Read more
    24. tate modern london
      11.5.2023

      Overlooking Nuisance Claims

      The Supreme Court’s Ruling on Overlooking as Private Nuisance In the case Fearn v Tate (2023) UKSC 4, the UK Supreme...

      Read more

    VIEW ALL