Consultation proposals on ground rents

Here are the proposals on reducing new ground rents to £10 - a good start ! (unless you are an investor 😱) 


Consultation closes 26 November.
Main proposals:

  1. Ground rents capped at £10, not a peppercorn or £1
  2. Can only be sued for in the year they are due, not after
  3. This seems to also apply to *voluntary* lease extensions too, whereas statutory extensions will be at a peppercorn. 
  4. No leasehold houses (hurrah) but some exceptions (e.g. shared ownership). To be regulated via Land Registry (!), which in effect means us conveyancers having to certify something I expect (groan). There will be exceptions and comment is sought on this. If a long lease is granted incorrectly on a house the homeowner to be able to cancel the lease and have the freehold transferred to them
  5. Ways for freeholders to challenge service charges on communal areas, similar to leaseholders at the moment
  6. Deadlines or managing agents and freeholders to provide leasehold information on sales
  7. Implementation mid 2020 at the earliest, 3 months after the commencement of the eventual legislation with no transitional period
It is refreshing that HMG has responded so relatively quickly on this point and let us hope that they will be as quick in responding with concrete proposals on the way in which lease extensions will be streamlined. Watch this space!
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