The Leasehold Reform (Ground Rent) Act 2022 – What Landlords Need To Know

The Leasehold Reform (Ground Rent) Act 2022 – What Landlords Need To Know

Following widespread calls for change, the Leasehold Reform (Ground Rent) Act 2022 will finally come into force at the end of this month on 30 June 2022, the exception being retirement properties which will not be affected until 1 April 2023.

The Act will limit ground rent in most new long residential leases to one peppercorn per annum, effectively abolishing rental income returns available to landlords and developers.

Whilst there have been concerns about escalating ground rent provisions in existing leases, the Act will not have retrospective effect. Should an existing lease be surrendered and re-granted however, it may very well be caught by the provisions of the Act.

The Act will apply to ‘regulated leases’, which means long leases granted for a term of more than 21 years of a single dwelling in exchange for a premium, on or after 30 June 2022.

There are exceptions and the Act will not apply if a lease is granted after 30 June 2022 pursuant to a prior agreement. Thus, if contracts have exchanged before 30 June 2022 and the grant of a new lease takes place after 30 June 2022, the lease will not fall within the scope of the Act and a ground rent above a peppercorn may be charged. If exchange and completion take place after 30 June 2022 however, the Act applies in full and only a peppercorn ground rent is chargeable.

Business leases, statutory lease extensions of houses and flats, community housing leases, and home finance plan leases are excluded.

Where a voluntary lease extension of a house or a flat is granted after 30 June 2022, the ground rent specified in the existing lease will continue to be payable for the remainder of the original term of the lease and a peppercorn rent will then be payable for the extended term.

There are serious sanctions for non-compliance with the Act and Landlords may face fines ranging from £500 to £30,000 per lease.

The abolishment of ground rents in new leases is part of a package of lease reforms which the Government intends to implement, including substantial changes to the calculation of premiums and procedures for lease extensions and collective enfranchisement. 

Simon Tennant

Sayrha Elahi

Senior Associate Solicitor

Dilek Kamalak invited to discuss with potential investors the legal aspects of buying a home in England

Dilek Kamalak invited to discuss with potential investors the legal aspects of buying a home in England

Dilek Kamalak, a Partner in Colman Coyle, is delighted to be a guest speaker to discuss the legal aspects of the home buying process in England.

The event will include potential investors looking to purchase property in the London market.

The event will also include guest speakers from Piccadilly Estates and Barratt London. It will take place at Barratt High Street Quarter Development in Hounslow on Wednesday 18 May 2022 from 17:45pm (BST).

Please read the leaflet below for a detailed overview. There are limited spaces available and therefore if you wish to attend, please email Piccadilly Estates on info@piccadillyestates.co.uk.

Colman Coyle act for a significant number of foreign investors in the UK. If you have any questions on how we can assist, please contact Dilek Kamalak on +44 (0)20 7354 3000.

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Are you looking for a Legal Secretary role in Property? We are recruiting!

Are you looking for a Legal Secretary role in Property? We are recruiting!

Colman Coyle is an established and highly regarded solicitors practice based close to the City of London in a thriving and cosmopolitan area of Upper Street, Islington.

The firm provides a wide range of legal advice and assistance primarily to commercial and high net worth national and international clients.

An exciting opportunity has arisen for a Legal Secretary to provide support to the property department. The ideal candidate will have between 2-5 years of residential and commercial property legal experience.

The role requires accurate and fast typing; you will have a typing speed of 65+ with knowledge of using a digital dictation system.

You will be responsible for assisting our solicitors in a variety of tasks including:

  • Opening new matters on our case management system and dealing with AML & KYC requirements;
  • Preparing correspondence and documents through digital dictation and word processing, organising, and filing documents;
  • Carrying out conveyancing searches;
  • Preparing and submitting applications to the Land Registry and dealing with post completion matters;
  • Preparing financial statements and invoices;
  • Diary management;
  • General administration.

Experience in a legal environment is essential.

In order to succeed in the role, the candidate must work well as part of a team as well as being able to use their own initiative. The role will require the individual to possess excellent communication and organisational skills, as well as being able to multi-task and prioritise work, think proactively and be flexible.

In return, you will receive a competitive salary and the opportunity to develop your own professional skills in a fast-paced yet friendly environment.

This is an immediate vacancy and at this stage applications are being requested by 9th May 2022 with interviews to follow thereafter. Any entries after this date will not be considered.

Position: Property Legal Secretary
Firm: Colman Coyle
Location: Islington, London N1
Salary: Competitive

Please apply via the LinkedIn portal or in writing to us with your CV addressed to Simon Tennant at vacancies@colmancoyle.com.

No application via agencies, please.

Dilek Kamalak invited by Unique London Consultancy to discuss the legal aspects of buying a property in the UK

Dilek Kamalak invited by Unique London Consultancy to discuss the legal aspects of buying a property in the UK

Dilek Kamalak, a Partner in Colman Coyle, is delighted to be invited by Unique London Consultancy to discuss the legal aspects of buying a property in the UK.

The webinar, which is aimed at investors in Turkey, will take place virtually on Thursday 21 April 2022 at 10:30am (BST).

The event will be a good opportunity for attendees to learn more about the property market in London and provide a brief overview of the buying process. The webinar will also include other guest speakers including Asel Talipova, the international sales manager of Barratt London and Volkan Ozcelik a mortgage adviser at 1st Call 4 Mortgages (UK) Limited.

Please click here to register for the webinar: https://bit.ly/3jyMNxc

Colman Coyle act for a significant number of foreign investors in the UK. If you have any questions on how we can assist, please contact Dilek Kamalak on +44 (0)207 354 3000.

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Colman Coyle’s Residential Property Team attend 12km walk to mark International Women’s Day and raise important funds for the Ella’s charity

Colman Coyle’s Residential Property Team attend 12km walk to mark International Women’s Day and raise important funds for the Ella’s charity

Nazli Kartal and Dee Yazicioglu from Colman Coyle’s Residential Property Team attended a 12km walk in Central London on Tuesday 8 March 2022 to mark International Women’s Day and raise important funds for the Ella’s charity.

Colman Coyle were kindly invited to attend by TM Searches Group and the Women In Residential Property Group. We are delighted over £700 has been raised for charity.

Ella’s are a small charity providing vital support to women who desperately need it and have nowhere else to turn. To find out more about the amazing work Ella’s do, please view the website here: https://www.ellas.org.uk/who-we-are

Please find below a couple of pictures from the walk:

St Pauls
RICS
Colman Coyle, Hawksford and Russo-British Chamber of Commerce hosted a joint hybrid event on advising foreign investors on investing into buy-to-let real estate assets in the UK

Colman Coyle, Hawksford and Russo-British Chamber of Commerce hosted a joint hybrid event on advising foreign investors on investing into buy-to-let real estate assets in the UK

The event took place on 14 September 2021 at The Clermont Hotel in Charing Cross in London, as a live event and it was also broadcasted via Zoom to the RBCC members.

The mixed panel discussion has provided a great overview of the legal, tax, KYC and Anti-Money Laundering requirements which foreign investors should be aware of when contemplating investing into property assets in the UK.

The panel of speakers from Colman Coyle included:

(i) Oksana Howard – Partner in Corporate and International Departments, who frequently acts for foreign investors investing into various assets in the UK. During the panel discussion Oksana talked about different types of investment structures used by foreign investors to purchase real estate assets in the UK, financing the purchase, KYC and Anti-Money Laundering requirements;

(ii) Sayrha Elahi – Senior Property Lawyer who advises a wide range of clients based in the UK and abroad. Sayrha has discussed issues associated with the legal difference between freehold and leasehold properties, conveyancing process and Stamp Duty Land Tax implications for overseas investors; and

(iii) Patrick Green – Senior Private Client Lawyer who has considerable experience in advising both domestic and international clients on a wide variety of inheritance tax planning, wills and related issues. Patrick has highlighted the importance of having a will and the key differences between English and Russian succession law.

Given that Colman Coyle acts for many international clients and also works very closely with professionals in other jurisdictions worldwide through its association with IR Global, participation in this high profile event is yet another example of Colman Coyle’s international outreach.

Photo of RBCC Event CC speakers
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