Rent and Service Charge Compliance for Long Residential Leases
Having robust procedures in place for rent and service charge collection is essential for the smooth running of any property rental business. Clear documentation helps landlords manage payments more efficiently, comply with their legal standards, and maintain positive relationships with leaseholders.
Legal Obligations For Ground Rent and Service Charges
Landlords of long residential leaseholders must meet a number of legal obligations when demanding ground rent or service charges. Failure to follow the correct procedure may result in:
- Financial penalties
- Inability to legally recover service charges or ground rent
Recent Legislative Changes
There have been a number of legislative changes concerning long residential leases, including:
- The Leaseholder and Freeholder Reform Act 2024, which introduced reforms to lease extensions and enhanced transparency in relation to service charges, major works and other costs
- The Leasehold Reform (Ground Rent) Act 2022, which restricts ground rent on new leases to a peppercorn amount
Explore the pages below for detailed guidance on how to issue a compliant ground rent demand, and notices and procedure for service charge demands
The Information pages will also refer to the available resources in Property to assist you with compliance.