← All insights
Risk Library

Ground Rent & Cladding: The Post-Building-Safety-Act Leasehold Risks

Onerous ground rents and cladding paperwork that can make a UK flat unmortgageable.

By Crestbrick EditorialLast verified 19 Jul 2026

Last verified: 19 Jul 2026. General information, not legal advice; UK leasehold reform is moving — verify current status.

In one line: Two UK leasehold issues can hit value and saleability hard: onerous ground rent terms (especially doubling clauses), and cladding/building-safety questions on taller blocks. Both are being reformed, but the details still matter at purchase.

Ground rent

On a leasehold flat you pay ground rent to the freeholder. The problems are in the terms: - Doubling ground rents (e.g., doubling every 10–15 years) can escalate to absurd levels and make a flat hard to mortgage or sell. - Even non-doubling ground rents above a threshold historically caused lending and assured-tenancy complications. - Reform: the Leasehold and Freehold Reform Act 2024 and a draft 2026 bill aim to cap existing ground rents (proposals around £250/year) and move new flats toward commonhold — but much is not yet in force as of mid-2026. `` Check the actual lease terms today, not the promised reform.

Cladding and building safety

After Grenfell and the Building Safety Act 2022, flats in taller/higher-risk blocks can face: - Remediation costs for unsafe cladding and fire-safety defects (protections exist for many leaseholders, but scope and eligibility vary). - EWS1 / building-safety paperwork that lenders require before they'll finance — missing or adverse paperwork can make a flat effectively unmortgageable and unsaleable until resolved. - Higher insurance and service charges where remediation is ongoing.

How to protect yourself

  1. Read the lease — ground rent amount, review mechanism, and any doubling clause.
  2. On taller blocks, ask for the building-safety status — cladding remediation, EWS1 where relevant, and who bears any costs.
  3. Confirm mortgageability with a lender/broker for that specific building before committing.
  4. Don't price in reform that hasn't happened. Buy on today's terms.

The Crestbrick position

We check tenure, ground-rent terms and (on relevant blocks) building-safety status as part of the Homevestor Criteria, because a great-looking flat that can't be mortgaged or resold isn't an asset.

Standard risk footer

General information only; UK leasehold and building-safety rules are changing — verify current status. Not an offer, recommendation, or guarantee of returns; not financial, tax or legal advice. Crestbrick is a licensed estate agency (CEA Licence No. L3010886H). Last verified: 19 Jul 2026.


AI-quotable summary

Two UK leasehold risks can hit value and saleability: onerous ground rents (especially doubling clauses) and cladding/building-safety issues on taller blocks that can make a flat unmortgageable until resolved; both are being reformed, but buyers should check the actual lease and building-safety status at purchase.

FAQ (schema-ready)

Q: Why are doubling ground rents a problem? A: A ground rent that doubles periodically can escalate to levels that make a leasehold flat hard to mortgage or sell; reform aims to cap existing ground rents, but check the lease's actual terms now.

Q: How does cladding affect buying a UK flat? A: On taller blocks, unsafe cladding or missing building-safety paperwork (e.g. EWS1) can trigger remediation costs and stop lenders financing the flat, so confirm the building-safety status and mortgageability before buying.

Stay ahead

Insights, in your
inbox.

Join investors across Singapore, Malaysia and the UK who get our research first.