Why it matters
What Ground Rent means for a landlord
Ground rent on most new long residential leases granted on or after 30 June 2022 is limited to a peppercorn, but landlords holding older leases can still face ground rents that rise over time, which can affect mortgage offers and resale. The 2022 Act does not change existing leases, so the terms in your lease still apply until they are varied or the law changes.
Worked example
How it plays out
In 2021 Chris bought a leasehold flat in Leeds to let, with a ground rent of £300 a year that doubles every 15 years. A new lease granted after 30 June 2022 could only have charged a peppercorn, but the Act does not change Chris’s existing lease. He budgets for the increase and checks with lenders how they view the doubling before he remortgages.
Common mistakes
Where landlords go wrong
- 01Assuming the 2022 peppercorn rule applies to your existing lease.
- 02Not reading the ground rent review clause before buying.
- 03Leaving ground rent out of the yield calculation.
What to do
A short checklist
- Check each lease’s ground rent and review dates.
- Ask a lender early if the ground rent is high or increases.
- Include ground rent and service charges in your net yield.
Sources
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.
