Will the looming ground rent cap help or hinder property sales?
The article examines the Government’s planned cap on most existing residential ground rents in England and Wales, moving them to £250 a year before reducing them to a peppercorn after 40 years under the forthcoming Commonhold and Leasehold Reform Bill. It argues the reform may ease sales and mortgage issues linked to onerous ground rents, but could also reduce freeholder income, create fairness concerns between leaseholders, and affect valuation and financing assumptions.
