Leasehold
The flat is shared ownership and the lease is recent. What does the 2022 Act do to rent on the landlord's share, which the survey does not calculate?
It does not wipe that rent. Section 5 of the 2022 Act sets a peppercorn on the tenant's share of a shared-ownership lease, and rent may still be charged on the landlord's share. A recent lease does not turn the landlord's share into a free slice. The home survey does not calculate either figure, and it does not price a staircasing purchase or an extension premium.
Last reviewed 24 October 2026. Written for buyers in England and Wales unless this answer says otherwise. No named surveyor has signed this page. It is general guidance, not a report on your house, and not legal advice.
What is the fuller explanation?
Shared ownership is easy to misread when someone hears that new leases are peppercorn. Section 5 splits the point. On the share the tenant has, the permitted rent in the sense of that section is a peppercorn. On the share the landlord still holds, rent may still be charged. That second rent is not cancelled because the lease is recent, and it is not a sum the surveyor finds by looking at the kitchen. Your solicitor matches the lease to the Act. The offer paperwork from the association is where the rent on the unsold share is usually shown. The inspection never recomputes it.
A separate warning sits beside the rent. Extending the lease can be much more expensive below 80 years, and the survey does not price that premium either. Ask how many years are left before you treat a recent grant as if the clock did not matter. Staircasing, if you later buy more of the home, is another instruction and another price. None of those figures belong in the condition ratings. Use the report for the building you will actually live in, and use the solicitor for the rent and any premium the tenure still reserves.
What should you ask your surveyor?
- Will you leave both the peppercorn point and the landlord's rent uncalculated?
- Are you silent on any extension premium as well?
- Which building defects still matter however the rent is split?
What are the typical next steps?
- Ask the solicitor to apply section 5 to this lease, not to a headline.
- Read the association's offer for rent on the unsold share.
- Ask how many years remain before you assume an extension will be cheap.
Costs vary with the building and with who you instruct. Where this page does not cite a published figure, ask the surveyor, a relevant specialist, or your solicitor for a written quote. Do not treat a forum average as the price.
Also asked about this
Does a peppercorn on your share mean the whole flat is rent-free?
No. Rent may still be charged on the landlord's share. That is the section 5 split.
If the lease was granted last year, has the 80-year warning gone?
No. How expensive an extension becomes depends on the years left, not on the fact the grant was recent. The survey prices neither.