Update on Leasehold Reform proposals

11 January 2021

Ground Rents Income Fund plc

(the "Company")

Update on Leasehold Reform proposals

The Company notes the announcement published on 7 January 2021 by the Ministry of Housing, Communities & Local Government, detailing its proposals to reduce future residential ground rents to zero and offer leasehold consumers a new right to extend their residential leases by up to 990 years in return for a premium.  Legislation setting future ground rents to zero is expected during 2021, with legislation relating to new lease extension rights expected to follow.  

The Company welcomes the Government's efforts to work with industry to make the lease extension process simpler and more effective, promoting a more equitable, transparent system for consumers, but as the Law Commission has previously stated, any potential reform will need to ensure sufficient compensation for landlords to reflect their legitimate property interests.

The Company will continue to engage with policymakers to understand the details of today's proposals and work towards meaningful reform that protects all stakeholders in the sector. The Company will monitor developments and provide further updates when it is appropriate to do so.

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