Average ground rent charges in England and Wales will be banned from 30th June 2022 in line with the government action to rid future homeowners’ annual costs.
Ground rent in England is on average worth hundreds of pounds a year, when in fact they provide no clear service of return and can increase regularly creating significant financial burden for leaseholders.
To prepare, many freeholders have already reduced the ground rent to zero for landlords starting a new lease with them.
If you are buying property in England and are preparing to sign a new lease on a home, you should speak to the freeholders to ensure their ground rent reflects the upcoming laws.
Future measures include a right for leaseholders to extend their leases up to 990 years at zero ground rent.