Big change for leaseholders - and it could unblock stuck sales 🙌🏼 If you own (or lend on) a leasehold flat, this is worth paying attention to.. The Government has confirmed plans to cap ground rents at £250 per year for existing leasehold homes in England and Wales. For many homeowners, that’s a meaningful shift. - escalating ground rents (especially doubling clauses) have made some flats hard to sell or remortgage - lenders often won’t touch leases with aggressive rent terms - some owners have been left stuck with properties they can’t move on from Under the proposals: 🔹 Ground rents will be capped at £250 🔹 New leasehold flats would be banned 🔹 Over time, ground rents are expected to fall to a “peppercorn” (effectively £0) 🔹 The threat of losing a home over small ground rent arrears would be removed The cap isn’t expected to come into force until late 2028, and there’s still debate about whether it goes far enough, but for many leaseholders, this could be the difference between being stuck and being able to move forward. From a finance point of view, this is one of those changes that can quietly improve mortgageability over time. If lease terms or ground rent have ever been flagged as an issue on your property it’s worth keeping this on your radar.

Posted by Rob Peters at 2026-03-02 07:13:24 UTC