UK bans Glasgow ‘unfair’ leases

UK Bans Glasgow leases

The UK Government has announced that the effective ban on ground rents in residential leases introduced by the Leasehold Reform (Ground Rent) Act 2022 (the Act) will come into force on 30 June 2022.

The ban follows negative publicity over the past decade around uncapped ground rents. Historically, ground rents were set at a ‘peppercorn’ or nominal level. However, in recent years a practice had emerged of selling properties on long leases with doubling ground rents, with the result that many long leaseholders faced onerous payments.

The intention behind the Act is to make leasehold ownership fairer and more affordable for leaseholders. The Act will, of course, affect the practice of residential developers significantly as well as the market in ground rents.

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