Leasehold: Reform

Department for Levelling Up, Housing and Communities written question – answered am ar 20 Chwefror 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Lord Kennedy of Southwark Lord Kennedy of Southwark Shadow Chief Whip (Lords), Deputy Chairman of Committees

To ask His Majesty's Government what actions a leaseholder with 99 years left on their lease has to take to take advantage of proposals for a peppercorn rent in the Leasehold and Freehold Reform Bill presently before Parliament.

Photo of Baroness Scott of Bybrook Baroness Scott of Bybrook Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

The Leasehold and Freehold Reform Bill will make it easier and cheaper for leaseholders to extend their lease or buy the freehold. The Bill includes a statutory right for qualifying leaseholders to obtain a 990-year lease extension, or to buy their freehold, on payment of a premium. In doing so they can obtain a peppercorn ground rent. In calculating the premium, the value of ground rent is capped at 0.1% of the freehold value.

In addition we have consulted on options to restrict ground rents for current leases and will respond to that consultation in due course. This Government has already restricted ground rents for new residential leases to a peppercorn.

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