Modern leasehold: restricting ground rent for existing leases

Overview

We are consulting on a number of options to cap the maximum ground rent that residential leaseholders can be required to pay in England and Wales. The consultation outlines 5 options including;

• capping ground rent at a peppercorn (zero financial value)
• capping ground rent at an absolute maximum value
• capping ground rent at a percentage of the property value
• capping ground rent at the original amount it was when the lease was granted
• freezing ground rents at current levels

It asks for views on the the following: 

• the full range of problems that existing ground rents can cause for leaseholders, and the scale of these problems  
• which option to cap ground rents respondents believe is the right one to deliver our aim of giving leaseholders a fairer deal
• whether there should be a period of delay before implementing any cap, and 
• the types of leases which need to be exempted from any cap to ground rents  

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