How does the Leasehold Reform Act 2022 affect ground rent charges?
The government introduced the Leasehold Reform (Ground Rent) Act 2022, which came into effect on 30th June 2022 and applies to all new and renewed leases.
The new legislation discontinued the charging of ground rent on residential leases with at least 21 years in England and Wales.
On these new leases, the freeholder can only charge a ‘peppercorn rent’, which essentially means that there is negligible ground rent, usually between £1-10 per annum.