http://www.legislation.gov.uk/ukpga/2022/1/section/7Leasehold Reform (Ground Rent) Act 2022Statute Law Database2024-02-08Expert Participation2023-09-20 Effect of term reserving prohibited rentTerm reserving prohibited rent treated as reserving permitted rent 7 1 This section applies where any term of a regulated lease to which a section specified in column 1 of the table applies reserves a prohibited rent. 2 The term has effect as if, in place of the prohibited rent, it reserved the rent specified in column 2 of the table. 3 Where the prohibited rent is reserved in respect of a period specified in column 3 of the table, or a share in the demised premises specified in column 4 of the table, or both, the term is treated as reserving the rent specified in column 2 of the table in respect of that period, that share, or that period and that share.
Column 1Column 2Column 3Column 4
SectionRent treated as reservedPeriod for which rent reservedShare in demised premises
Section 4 (general rule)peppercorn rent
Section 5 (shared ownership leases)peppercorn renttenant’s share
Section 6 (replacement leases)maximum permitted rentexcepted periodtenant’s share (where section 6(7) applies)
Section 6 (replacement leases)peppercorn rentregulated periodtenant’s share (where section 6(7) applies)
4 The “maximum permitted rent” means the maximum rent permitted by section 6(2)(a). 5 The other terms of the regulated lease have effect with any modifications necessary because of subsections (2) and (3). 6 For the purposes of this section, the terms of a regulated lease include the terms of any contract relating to the lease. 7 Terms used in this section and in sections 4 to 6 have the same meaning in this section as in those sections. S. 7 not in force at Royal Assent, see s. 25(2)S. 7 in force at 30.6.2022 for specified purposes by S.I. 2022/694, reg. 3S. 7 in force at 1.4.2023 in so far as not already in force by S.I. 2022/694, reg. 4