Update on leasehold reform and ground rents

The Leasehold Reform (Ground Rent) Act 2022 received Royal Assent on 8th February 2022 and the provisions were brought into force on 30th June 2022.

29 Jun 2022

Team name
Joanne Wood

Joanne Wood

The Act provides that ground rent cannot be demanded in respect of any new long residential lease and landlords cannot charge administration fees for collecting a peppercorn rent.

Mullis & Peake LLP are members of ALEP (Association of Leasehold Enfranchisement Practitioners) who are liaising closely with the government regarding further reforms and who have been advised by Lord Greenhalgh that The Ground Rent Act is the first part of the government’s major two-part leasehold reform within this Parliament.

The next stage is to build on the Act and provides additional support for leaseholders to make home ownership cheaper, fairer and more secure.

They intend to reform the process of valuation and to abolish marriage value.  Instead, they are looking to introduce prescribed rates for the calculations at market value as well as introducing an online calculator to both simplify the process and ensure standardisation for all those looking to enfranchise. It is hoped that the changes will make the valuation process easier and that they will result in substantial savings for some leaseholders, particularly those with less than 80 years of the lease term remaining on the lease.

In addition, the length of a statutory lease extension is to increase to 990 years, from 90 years (for flats) and 50 years (for houses).  Leaseholders will be able to extend their lease with a peppercorn ground rent on payment of a premium.

The amendment to the lease term is unlikely to be too controversial but amendment to the valuation process may be more complicated and contentious.

Although the commitment from the government is obviously present, there remain a lot of uncertainties and it is a question of “watch this space”.

M&P Commentary

Joanne Wood, Head of the Property at Mullis & Peake LLP, said:

“We are proud that Mullis & Peake LLP are a member of ALEP and we remain keen to support ALEP with their negotiations with the government.”

Joanne, along with her fellow leasehold enfranchisement experts, Shelley Fitzpatrick and Natacha Gomes, are avidly following the ongoing negotiations and reforms and continue to be dedicated to our leasehold and freehold clients in negotiating the tricky path of leasehold enfranchisement.


Ranked highly in Romford and Brentwood for solicitor firms

Dispute resolution
I am extremely grateful for the service I received, with professional help & advice these past years.
Mr North
Trusts and Probate
We would like to thank Anne and Manzurul for helping to make our probate application go smoothly and efficiently. We found the process very professional.
M McDermott
From start to finish our needs were handled with all due care and attention to detail.
Residential Property
Svetlana at Mullis & Peake recently handled our divorce transactions and house purchase, no fuss, straight forward advice, great communication and handled efficiently.
Residential Property
Trusts and Probate
Excellent service and very good advice on both recent matters. Mullis & Peake have acted for our family for many years and have proved very professional on each occasion
Residential Property
Mullis & Peake dealt with both the sale and purchase for my mum's properties. Paul is professional, helpful and efficient. Explained all the processes in a timely manner. Top quali...
I've found the service I've received at Mullis and Peake to be courteous, professional and highly recommendable.
Special thanks to Roisin McCorry for her professionalism, resolve, patience, and the support she provided during this very difficult time.
Dispute resolution
Extremely satisfied with service received from Mullis & Peake. I would thoroughly recommend their service as they were recommended to me.