'These punitive charges can leave some paying thousands of pounds a year for nothing in return'
Plans to 'slash' ground rents have been unveiled by the government today , a move which is set to save homeowners thousands each year. The new law was first announced in the King's Speech on Tuesday where King Charles III outlined the government's plans for the year ahead.
This will make the 'long-term and necessary' changes to improve homeownership for millions of leaseholders in England and Wales, by making it cheaper and easier for more leaseholders to extend their lease, buy their freehold, and takeover management of their building. The Leasehold Reform Act 2022 means that if any ground rent is demanded as part of a new residential long lease, it cannot be charged at more than the cost of one peppercorn per year – effectively setting the rate to zero.
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