Ground Rent
Ground rent is a fee paid by the leaseholder of a property to the freeholder or landlord as a condition of their lease. This payment is typically annual and acknowledges the leaseholder's right to occupy the land.
What is Ground Rent?
Ground rent is a concept deeply embedded in the property markets of England and Wales, representing a key feature of leasehold ownership. Leasehold ownership means that while the leaseholder owns the property (such as an apartment or house) for a fixed period, the land on which the property stands is owned by the freeholder or landlord. Ground rent is thus a form of recognition that the leaseholder is occupying someone else's land.
The terms of ground rent, including the amount and the frequency of payments, are outlined in the lease agreement. Historically, ground rent was a nominal sum, but recent years have seen a significant increase in some cases, leading to controversy and calls for reform in leasehold practices. Ground rent can also escalate over time, depending on the terms of the lease, which can affect the affordability and desirability of leasehold properties.
Frequently Asked Questions
Ground Rent is a term that you may have heard before, but you might not be sure what it means. Here are some common questions and answers to help you understand what it means.
