Ground rent to be banned in England & Wales from 30 June 2022

Ground rent will be scrapped on most new residential leases in England and Wales from 30 June 2022. This could save future homeowners hundreds or even thousands of pounds a year.

At Burt Brill & Cardens, our expert residential conveyancing team are on hand to help with your leasehold. Need help now? Call us on 01273 604 123 or email

What is the new Leasehold Reform Act?

The Leasehold Reform (Ground Rent) Act 2022 is new legislation in England and Wales which will mean leaseholders of residential leases granted after 30th June will not have to pay ground rent.

Officially, the Act will set ground rents to a ‘peppercorn’, which in legal language means zero or a nominal amount, such as £1 and is unlikely to be demanded. The new Act will also stop freeholders charging administration fees for collecting any peppercorn rent.

The Government have said, ‘we firmly believe that the Act’s provisions will lead to fairer, more transparent homeownership for thousands of future leaseholders.’

Brighton Lease Solicitors

If you need legal advice from expert property solicitor, our team is here to help.

We know that the world of conveyancing can be frustrating; conveyancers and estate agents often use lots of jargon and charge unexplained fees. There are lots of steps in the process, deadlines, and terms to understand.

Buying a new home should be an exciting time but can often end up feeling stressful. On top of this, not using an expert can cost you in future if potential issues are overlooked.

At Burt Brill & Cardens we cut the jargon out and explain legal terms and processes in plain English. Our aim is to make the conveyancing process as stress free as possible. Whether you are buying your first flat or looking to own the freehold for your building, we want you to enjoy the experience as much as possible. We manage the legal complexities so that you can deal with what’s important – taking this next exciting step in life.

If you would like to speak to our friendly and expert team, call us today on 01273 604 123 or email us at

What is ground rent?

Ground rent is a fee that many leaseholders pay every year to the property freeholder. In the past this was usually a small fee, but ground rent rates have risen exponentially in the last few decades and can now be hundreds or even thousands of pounds.

I want to buy a flat soon. Should I wait until 30 June to avoid ground rent?

There is no reason to wait until 30th June 2022 to start your property search. Due to the many causes of delay involved in conveyancing, it is best to get started as soon as possible when it comes to buying your property. Our expert conveyancing team will review your lease and ensure that it is line with the new Leasehold Reform Act.

How does the Leasehold Reform Act affect current leaseholders?

Unfortunately for current leaseholders, the new Act only affects leases granted from 30 June 2022, so ground rent will still be payable. If you extend your lease it may be possible to reduce the ground rent, but otherwise you will have to continue to pay ground rent under your existing lease.

If you are unhappy with the terms of your current lease and need advice, our experienced property solicitors can advise you on your options and the next best steps. Get in touch with us to book your consultation.

Which leases does the Leasehold Reform Act apply to?

The new legislation will apply to residential leases that are granted on or after 30th June 2022. The lease must be over a term of 21 years and be for a single dwelling, such as a flat or a house.

Commercial business leases, lease extensions, community housing leases and home finance lease plans are not included in the new Act.

Will the Leasehold Reform Act apply to retirement homes?

The Act will not apply to retirement home leases until at least 1 April 2023. This is to allow the retirement sector additional time to prepare, as ground rents are often used to fund communal facilities and spaces.

What will happen to freeholders that charge ground rent after 30 June 2022?

The Government have said that there will be a financial penalty and will fine freeholders up to £30,000 if they attempt to charge ground rent in contravention of the Act.

I need to extend my lease. Will the new Act apply to me?

The Act will not apply to lease extensions. If you own a leasehold, it is vital that you extend it if it is approaching 85 years or less in length – click here to read why.

Depending on how your lease is extended, the ground rent may be reduced. Speak to our lease extension team for bespoke advice on your lease terms.

Can I change my leasehold to a freehold?

If you would like to purchase the freehold of your building, you may be able to do so jointly with the other flat owners in your building. This is called ‘leasehold enfranchisement’ and is a complex area of property law with strict procedures. Our residential property solicitors are experienced in advising on and dealing with leasehold enfranchisement. If you would like to own your freehold, get in touch with us today to start the process.

Burt Brill & Cardens have been incredibly helpful taking us through the journey of lease extension with minimal fuss and pain. We had heard how difficult and cumbersome it was to extend a lease. Definitely this was not our experience with Burt Brill & Cardens Solicitors being in charge.

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Speak to one of our solicitors today. We would love to hear from you and discuss any legal issues you may have and how we can assist you.

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