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Leasehold ground rent — £250 cap calculator

Model whether the £250 ground rent cap proposed in the draft Commonhold and Leasehold Reform Bill would affect your lease, today and at end-of-term.

Draft Bill scenario, not current law. The £250 cap is a policy proposal. It is not in force. This tool models the consequence if it were enacted in its current shape.

Use 0 for fixed-rate ground rent, or the annual uplift rate from your lease (RPI doubling clauses often work out at 5–7% pa).

Frequently asked questions

Is the £250 cap law yet?

No. It is a proposal in the draft Commonhold and Leasehold Reform Bill. This tool models the impact if it were enacted in its current shape.

What is a peppercorn ground rent?

A nominal rent — typically £0 — used to satisfy the legal need for "consideration" without imposing a real charge. Existing peppercorn leases would not be affected by a cap.

What about the doubling-rent clauses?

Compound-doubling and high-RPI escalation clauses are the main reason for the proposed cap. The Bill targets exactly these onerous clauses by limiting the maximum payable.

Does this affect leasehold houses or just flats?

The proposals cover existing residential leases regardless of property type. Separate proposals also ban the sale of new leasehold flats in favour of commonhold.

Sources & references

All thresholds, dates, and figures shown on this page come from the following authoritative sources.

This is general information, not legal or tax advice. For decisions affecting a specific tenancy, lease, or tax position, consult a qualified solicitor, accountant, or housing adviser.

See also: What's the difference between freehold and leasehold?