0:02 AM, 7th July 2023, About 8 months ago 5
Hello, I exchanged on a new build flat before June 2022 when the new regulations on Ground Rent came into force. The property is due to be completed this month and the freeholder wants to charge £350 pa Ground Rent with five yearly reviews.
Can the freeholder do this under the new regulations?
Any advice would be appreciated,
Editors Note: The Leasehold Reform Ground Rent Act 2022 can be found here
From 30 June 2022, landlords of regulated leases must not require a leaseholder to make a payment of prohibited rent.
The peppercorn limit generally only applies to new residential leases that were granted after commencement of the Act, that is leases granted on or after 30 June 2022, or 1 April 2023 for leases of retirement homes (the ‘relevant commencement date’). If you bought a new (regulated) lease after this date you will not be faced with financial demands for ground rent.
Check whether your lease is covered by this Act. The Act’s peppercorn limit only applies to leases granted on or after the relevant commencement date. This reform does not apply to existing leaseholders. They will continue to face ground rent charges while they own their property on a leasehold basis.
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