Future homebuyers freed from expensive ground rent bills

Waterfords Estate agents with branches in Camberley, Chobham, Fleet and Yateley bring you the very latest legislation changes that affect the UK property market. This article covers the Leasehold Reform (Ground Rent) Act 2022.

What is the Leasehold Reform (Ground Rent) Act 2022?

This is the government's ban on charging ground rent on leases in England and Wales. It comes into force on 30 June 2022.

Future homebuyers will see their prospective property bills reduce from on 30^th June, when the government’s ban on charging ground rent on new leases in England and Wales comes into force.

The government is taking action to rid future homeowners of annual costs – known as ground rent. Sometimes worth hundreds of pounds a year, these charges provide no clear service in return and can be set to escalate regularly, with a significant financial burden for leaseholders.

From 30 June 2022, anyone buying a home on a new long lease will now be freed from these annual costs, helping homeowners manage their bills as they face cost of living increases.

Landlords will be banned from charging ground rent to future leaseholders, under a new law that will lead to fairer, more transparent homeownership for thousands of homebuyers, helping to level up opportunities for more people.

The move forms the first part of the government’s reform package that will make homeownership cheaper, fairer and more secure.

What is ground rent?

Leaseholders commonly pay ground rent to their freeholder or landlord. The amount will vary according to your lease. It may be a one-off cost when you move in or an amount paid quarterly or yearly. It may also be fixed, staying the same throughout the lease, or set to increase throughout the lease.

Are you unsure of the difference between freehold, leasehold and fleecehold? See our other article explain the difference: What does fleecehold mean for buyers?

Are you looking to buy a property in Camberley, Chobham, Fleet or Yateley?

Register your details with our friendly and knowledgeable team here. Alternatively, call one of our branches directly on the numbers below:
 

• Camberley: 01276 66566
• Chobham: 01276 858589
• Fleet: 01252 623333
• Yateley: 01252 870222

Click here to view all our properties currently for sale

Source: gov.uk. DISCLAIMER:  This article is intended for information only and does not constitute legal advice. If you have any questions related to issues in this article, we strongly advise contacting a legal professional.