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ARTICLE · 08 JUNE 2021

Leasehold Ground Rent Reform – What Does This Mean For Developers?

Boyes Turner
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In May we saw both the publication and second reading in the House of Lords of the Leasehold Reform (Ground Rent) Bill.

United KingdomReal Estate and Construction
Steph Richards
Steph Richards
William Nassau-Lake
William Nassau-Lake

In May we saw both the publication and second reading in the House of Lords of the Leasehold Reform (Ground Rent) Bill. The terms of this Bill are unlikely to be enforceable before 2023, but if it becomes law it will apply to all dwellings (houses and flat) sold by way of a long lease (having a term of 21 years or more). It will also apply to retirement housing, but the application to this sector is due to be rolled out at a different time, with the Bill specifying that its provisions will apply to retirement housing no earlier than 1 April 2023. 

Developers selling new leasehold properties, and landlords with existing stock should be aware of the following key changes proposed by the Bill:

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