The leasehold reform (ground rent) act 2022 limits ground rents to a symbolic annual (literal) peppercorn. However it doesn’t seem to require, but merely allow, the charging of such a ground rent.
Indeed most long leaseholds are purchased for far more considerable purchase prices, which is indeed what largely differentiates them from shortholds, wherein the primary form of consideration has always rent, and indeed since 2019 it is the sole allowed form.
It seems that when a conveyance has no consideration, and even possibly when it does, it is to be performed by deed, rather than by contract, and the purposes of deeds are to undertake binding promises even when there is not consideration such as is needed under common law to form a contract.
And yet, long leases simultaneously both:
- already have such consideration in the form of purchase prices, and
- are required by law to be done by deed anyway, and thus don’t even require any.
Yet, the leasehold reform act seemingly is unnecessarily complicated by abolishing any meaningful ground rents with the exception of a symbolic (literal) peppercorn, rather than outright. Why does it introduce such seemingly unnecessary complexity when it could more simply abolish this practice outright?