The Government is set to announce a cap on all ground rents today. They are rumoured to be capping all existing ground rents at £250pa – despite previous requests to make all existing ground rents a peppercorn £0pa.
This will have a major impact on many leaseholders – especially those with more modern flats where ground rents in some cases were set to rise to more than the value of the actual flat.
In some cases, this will help to keep down the cost of lease extensions and purchasing freeholds once this is in place.
More updates to come once full details are known.