If we say ground rent, do you get an instant headache?

If we say ground rent, do you get an instant headache? It has always been a headache for many leaseholders. When the charges are unfair or keep rising, this is what makes it worse. But new reforms mean that’s starting to change.

Leaseholders in England and Wales will have the right to reduce their ground rent to a “peppercorn” amount, basically £0, due to the recent changes. This is a big step forward in making leasehold ownership fairer and more transparent.

The change comes as part of the Leasehold and Freehold Reform Act 2024. It is expected to come into effect later this year. For homeowners, it means no more worrying about hidden costs tied to outdated lease terms.

If you are a property lawyer or estate agent, now is the time to get familiar with the process and help clients prepare. Freeholders may need to adjust or vary existing leases and buyers will be looking for reassurance that their property is future-proof.

The days of spiralling ground rent could soon be over, replaced with something symbolic and fair.

Here’s the full article:

https://heyor.ca/dOlqZi

#LeaseholdReform #PeppercornRent #PropertyLaw #Homeownership

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