The deferment rate is relevant to residential leaseholders whether they are a house owner seeking their freehold, a flat owner seeking a longer lease of their flat or the freehold to their building acting in concert with other flat owners.
In January 2026 the Government published the Draft Commonhold and Leasehold Reform Bill, confirming its intention to cap ground rents in existing residential leases at £250 per annum, with a longer-term objective of reducing those rents to a peppercorn. Another proposal by the Bill is to ban the creation of new leaseholds and instead to make commonhold the default mode of flat ownership.
The Bill has been published in draft form only and is subject to pre-legislative scrutiny, consultation and amendment. It is important for leaseholders, landlords and managing agents to understand the effects of the proposals and the likely timescale for their implementation.
The right to manage (RTM) enables leaseholders of residential flats to take control of management of their building via an RTM company that they are members of so replacing the landlord or other third party appointed in the lease in this regard.
