This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how to claim a refund for overpaid ground rent in England and Wales, including checking lease eligibility under the Leasehold Reform (Ground Rent) Act 2022, requesting repayment from the landlord, involving enforcement authorities, and applying to the First‑tier Tribunal for a recovery order where necessary.
Leaseholders in England and Wales sometimes find that they have overpaid ground rent, either because the landlord incorrectly charged amounts that are legally unenforceable or because recent changes in law affect what ground rent can be demanded. This guide explains what ground rent is, how the law has changed, and practical and legal steps you can take to seek a refund for overpayments. It's designed to help leaseholders, solicitors, and members of the public understand the applicable rights, processes, and possible outcomes.
What Is Ground Rent?
Ground rent is a sum payable by a leaseholder to their landlord (freeholder) under the terms of a lease. It is separate from service charges and is not tied to any specific service the landlord provides. Ground rent historically could be significant and even increase periodically, sometimes causing difficulties for leaseholders trying to sell, remortgage or manage their property obligations.
Under the Leasehold Reform (Ground Rent) Act 2022, most new long residential leases in England and Wales granted on or after 30 June 2022 must only require a peppercorn ground rent, which is effectively nil in financial value. This means landlords cannot legally demand monetary ground rent from these new leases.
When Might an Overpayment Occur?
Overpayment of ground rent may occur in several situations:
- Lease granted after 30 June 2022 (or after 1 April 2023 for retirement homes): a landlord demanded and accepted prohibited ground rent contrary to the law.
- Lease terms remain unclear or were misunderstood at the time of purchase, leading to excessive or non‑compliant ground rent demands.
- Double or multiple payments within one year due to administrative error.
If you believe ground rent collected was not lawful or exceeds what the landlord was entitled to demand, you may be owed a refund.
Legal Framework Governing Ground Rent Refunds
Since 30 June 2022, the Leasehold Reform (Ground Rent) Act 2022 provides the legal basis for controlling what ground rent can be charged on most new long residential leases in England and Wales. Under this Act:
- landlords must not require payment of prohibited ground rent that exceeds the statutory limit (a peppercorn) in regulated leases;
- where prohibited ground rent has been received, the landlord must refund it within 28 days of receiving it;
- if the landlord fails to refund it, enforcement authorities can investigate, issue penalties and make recovery orders to ensure repayment;
- leaseholders themselves can apply to the First‑tier Tribunal (Property Chamber) for a recovery order if a refund is not forthcoming.
The statutory guidance confirms that refunds are mandatory for prohibited ground rent once paid. If a refund is not issued within the statutory timeframe, leaseholders have clear avenues to pursue enforcement or tribunal action.
Step‑by‑Step Guide to Claiming a Refund
Step 1 - Check If Your Lease Is Covered by the Ground Rent Act
Determine when your lease was granted:
- Leases granted on or after 30 June 2022 (or 1 April 2023 for retirement homes) that contain ground rent terms requiring payable rent are generally regulated by the Ground Rent Act.
- If your lease is regulated, any ground rent demanded that exceeds a peppercorn is prohibited and should be treated as if replaced with a peppercorn.
If your lease is older than these dates, ground rent may still be payable under the lease terms and not subject to a refund unless there are other contractual or legal defects.
Step 2 - Review Your Lease and Payment History
Carefully review:
- the ground rent clause in your lease;
- written demands for payment from the landlord or managing agent;
- your bank statements or payment records showing amounts and dates paid.
Collecting this documentation will be essential in supporting your refund claim, whether to the landlord, an enforcement authority, or a tribunal.
Step 3 - Ask the Landlord to Refund the Overpayment
Start by making a formal written request to the landlord or managing agent demanding a refund of the overpaid ground rent. Include:
- copies of your lease showing ground rent terms;
- evidence of payments made;
- a clear explanation of why the payment is prohibited under the Ground Rent Act.
Under the statutory guidance, where prohibited ground rent was paid, the landlord must refund it within 28 days of payment. If they refuse or fail to respond, further action may be necessary.
Step 4 - Seek Assistance from Enforcement Authorities
If the landlord does not refund the prohibited ground rent:
- in England and Wales, local weights and measures authorities have a duty to enforce the Ground Rent Act and may initiate investigations;
- these authorities can serve notices, impose financial penalties on the landlord (minimum £500 up to £30,000) and make recovery orders requiring repayment of overpaid rent;
- many local authorities will provide initial advice or support with enforcement proceedings.
Contact your local authority's weights and measures enforcement team or a similar enforcement body for assistance.
Step 5 - Apply to the First‑tier Tribunal for a Recovery Order
If the landlord continues to refuse a refund and enforcement authorities are unable or unwilling to act, you can apply directly to the First‑tier Tribunal (Property Chamber) in England for a recovery order under the Ground Rent Act. The tribunal can order the landlord to repay the prohibited amounts you have paid.
When preparing your tribunal application:
- provide a clear copy of your lease;
- evidence of all ground rent payments alleged to be prohibited;
- correspondence with the landlord or agents requesting a refund; and
- an explanation of why the rent charged is prohibited by statute.
Tribunal decisions are legally binding and can include interest on the recovered amount where appropriate.
Practical Considerations and Risks
Ensure Ground Rent Is Not Lawful
Before demanding a refund, confirm that ground rent was legally prohibited under the Ground Rent Act. Older leases (prior to the relevant dates) are typically not covered by the Act and do not automatically entitle you to a refund of lawful ground rent even if considered high or financially burdensome. You may instead need to explore other legal remedies (such as negotiation or tribunal review of ground charges generally).
Time Limits and Record Keeping
Collect all relevant payment records and correspondence, as tribunal proceedings and enforcement actions will require precise evidence of what you paid and when. There is no strict statutory time limit beyond the 28‑day refund window for refunds under the Act, but evidence must clearly link the prohibited rent paid to the amounts claimed back.
Key Takeaways
Claiming a refund for overpaid ground rent in leasehold property in England and Wales is primarily driven by the Leasehold Reform (Ground Rent) Act 2022 where leases are regulated by that Act. The key steps are:
- confirm your lease is covered by the Act;
- gather documentation of ground rent payments and lease terms;
- request a refund in writing from the landlord;
- seek enforcement through local authorities if necessary;
- apply to the First‑tier Tribunal (Property Chamber) for a recovery order where refunds are not forthcoming.
Ground rent refunds can involve enforcement powers, financial penalties for landlords, and binding tribunal orders that include interest on recovered amounts. Ensuring you have clear evidence and following the statutory processes enhances your prospects of successfully recovering amounts that were unlawfully charged.
