خلاصہ
This Act restricts ground rents in new long residential leases to a 'peppercorn' (i.e., zero financial value). It applies to most new long leases of houses and flats granted on or after 30 June 2022 and is designed to protect leaseholders from escalating ground rent obligations. Landlords who charge a prohibited rent commit a civil wrong enforceable by trading standards.
اہم نکات
- Ground rent in most new long residential leases must be a peppercorn (zero) (s.3)
- Applies to leases granted on or after 30 June 2022 that are 'regulated leases' (s.2)
- A 'regulated lease' is a long lease (over 21 years) of a single dwelling (s.2)
- Does not apply to business leases, community housing leases, or certain excepted leases
- Landlords who demand a prohibited rent are liable for a financial penalty of £500 to £30,000 (s.7, enforced by local weights and measures authorities)
- Does not apply retrospectively to existing leases — only new leases from commencement date