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<p>Where ground rents exceed £250 per year or £1,000 per year in London, a leaseholder
is classed as an assured tenant. This has the effect of bringing some leaseholders
within the ambit of Ground 8 of Part 1 to Schedule 2 of the Housing Act 1988. This
means, for even small sums of arrears, leaseholders could be subject to a mandatory
possession order if they were to default on payment of ground rent. This is a disproportionate
remedy that was never intended for leaseholders. As part of our leasehold reform work
we are committed to legislating for provisions which ensure that leaseholders will
not be subject to Ground 8 mandatory possession orders for arrears of ground rent.
We will bring forward the necessary legislation as soon as parliamentary time allows.</p><p>
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