Government seeks views on exemptions for ‘quid pro quo’ leases in ground rent cap
Summary
The government is consulting on whether so-called quid pro quo leases should be exempt from, or treated differently under, proposed ground rent caps in residential leases. The consultation forms part of the Commonhold and Leasehold Reform Bill and seeks evidence on how such an exemption might be defined and operated, if needed.
Why it matters
This is relevant to residential property surveyors because lease terms, ground rent structures and leasehold reform can affect valuation, marketability and advice to clients. Surveyors involved in leasehold work may also be asked to comment on the practical impact of any exemption on transactions and lease analysis.
Key points
- Government is consulting on a possible exemption for quid pro quo leases from the proposed ground rent cap.
- The proposed cap would limit ground rents to £250 per year, then reduce them to a peppercorn after 40 years.
- The consultation asks how any exemption should be defined and how it should work in practice.
- Evidence is being sought from leaseholders, freeholders and professionals with relevant experience.
- The consultation closes on 27 August.
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