Leasehold: Ground Rent
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential impact of restrictions on ground rents on levels of service charges for leaseholders.
Answered by Matthew Pennycook
Ground rent is a payment set out in a lease with no clear service provided in return. It is legally distinct from service charges.
Service charges are financial contributions made by leaseholders towards the costs of the management and maintenance of their buildings.
Where they relate to a service, they must be reasonable. Leaseholders who wish to contest the reasonableness of their service charges can make an application to the First-tier Tribunal.
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