ROT: The Leasehold (Ground Rent) Reform Act 2022 - Implications

Rationale: The guidance of notes for 2022 CQS (CPMS) sets out that firms consider and give appropriate advice on the saleability and mortgageability. It even extends to giving information of ‘future value’ This means that lawyers need to contemplate the potential implications of current or even proposed legislation. Firms may wish to include a warning about the possibility of the Leasehold (Ground Rent) Reform Act 2022 creating a two tier leasehold system and how this could affect marketability of the property in the future. This sample paragraph may be considered for existing leaseholds where there is more than a nominal ground rent.