Since the 30th of June 2022, The Leasehold Reform (Ground Rent) Act 2022 restricts landlords from charging ground rent on new residential leases in England and Wales.
Ground rents are regular payments (usually paid annually) made by the leaseholder to the freeholder or a superior leaseholder to occupy the land the property is built upon. Hence, there is no benefit to the leaseholder. The ground rent can increase frequently in accordance with the terms of the lease and can be very expensive, thereby affecting the marketability of a property.
The Government is eliminating ground rent for future leaseholders and are putting in place further measures to assist current leaseholders in extending their leases to 990 years at no ground rent. Other measures include, creating an online calculator to assist leaseholders in determining the cost of purchasing their freehold or extending their lease.