The End of Ground Rents

6 Apr 2022 | Shilpa Mathuradas
A hand is holding a model house

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

Contact Shilpa today

For a free initial conversation call 0207 485 8811

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. 22.3.2024

      The Death of Section 21: A Review of the...

      The 2019 Conservative Manifesto made a commitment to end “no fault evictions”. This has now been set out in the proposed...

      Read more
    2. 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
    3. 28.2.2024

      The Consumer Credit Act 1974 to the rescue?

      Our clients issued a claim against their former accountant, friend and trusted confidante. The clients ran a restaurant from a...

      Read more
    4. 23.1.2024

      The Leasehold and Freehold Reform Bill and Service...

      The Leasehold and Freehold Reform Bill was introduced to Parliament on 27 November 2023 with the aim of delivering on the government’...

      Read more
    5. 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
    6. 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
    7. 23.1.2024

      Party Wall Etc Act 1996 v Common Law

      The case of Power & Kyson & Shah [2023] EWICA Civ 239 brought in question the interrelationship between common law and the...

      Read more
    8. notting hill coloured houses
      4.12.2023

      The Leasehold and Freehold Reform Bill 2024

      As of the 27th November 2023 “Bill 13” has been introduced in the House of Commons. The passage of the bill could...

      Read more
    9. 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
    10. 27.10.2023

      The Building Safety Act 2022

      This much awaited Act was introduced into Parliament on 5th May 2021 as a consequence of the Hackitt Report on Building...

      Read more
    11. service charges
      22.8.2023

      “Reasonableness” of Service Charges

      It is well known that the relevant costs that a landlord incurs in the provision of services, repairs improvements, maintenance...

      Read more
    12. 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
    13. 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
    14. tate modern london
      11.5.2023

      Overlooking Nuisance Claims

      Overlooking Nuisance Claims – net curtains not necessarily! I refer to the article https://osborneslaw.com/blog/overlooking-nuisance-claims-buy-some-net-curtains/ which concerned the...

      Read more
    15. cars on portobello road
      11.5.2023

      Rent Repayment Order: Rakusen v Jepsen

      Rakusen v Jepsen & Others 2023 Judgement was given in this case on the 1st March 2023 and when it was settled...

      Read more
    16. 10.5.2023

      Government Announces Leasehold Reforms

      The government announced in 2021 the introduction of various leasehold reforms which will affect the leasehold system for properties in England...

      Read more
    17. kyance mews london
      13.2.2023

      Transfer of Equity Stamp Duty

      Do I Pay Stamp Duty Land Tax When Transferring Property into My Partner’s Name? When it comes to property...

      Read more
    18. apartments in london
      13.2.2023

      Shared Ownership Stamp Duty

      Do you pay stamp duty on shared ownership? When you buy a new shared ownership property, you are given two...

      Read more
    19. little venice in London
      8.2.2023

      Severance of a Joint Tenancy

      Severing a Joint Tenancy Normally, when couples buy a property together they do so as joint tenants. This means they...

      Read more
    20. camden lock
      8.2.2023

      Tenants in Common vs Joint Tenants

      Tenants in Common vs Joint Tenants: Which is best for buying a property together? When buying a property with someone...

      Read more
    21. Japanese Knotweed
      5.2.2023

      Japanese Knotweed: Knot in my backyard again!

      Many will have read the recent case in which a furniture designer pursued his seller successfully after he moved into...

      Read more
    22. door handle with a key
      20.1.2023

      Stamp duty tax to remain the same until 2025

      Good news for buyers as the current SDLT rates will remain until 2025 Buyers looking to purchase this year will be...

      Read more
    23. Concerned upset millennial couple
      19.1.2023

      Half of UK renters worried they will not...

      As rent rises for the majority of UK renters, half are worried they will not be able to afford it...

      Read more
    24. grand union walk camden
      23.9.2022

      First-time buyer stamp duty exemption

      Stamp duty is the bane of every home buyer, with only first-time buyers being exempt from paying the tax if...

      Read more

    VIEW ALL