No Longer Grounded – Changes In Leasehold Enfranchisement

Outside of case law tweaks to the aging legislation, it is rather rare that anything significant happens in the world of enfranchisement. June 2022, however, is different.

The Leasehold Reform (Ground Rent) Act 2022 ("LRGRA"), which achieved Royal Assent in February, comes into force on 30 June. Henrietta Hammonds from specialist surveyors, Beckett and Kay shares with us what this means for those with investments in the leasehold sector:

Against the backdrop of the wider leasehold scandal, the LRGRA benefits future leaseholders only – there is no retrospective application. From 30 June, ground rent on the majority of new long leases will be capped at a peppercorn, i.e. zero. (A long lease is one granted for an initial term of more than 21 years). The Act will also apply to retirement properties but will not come into force until 2023.