Ground Rents

Ground rents are annual payments made by a leaseholder to a freeholder in accordance with the terms set out in the lease.

Ground rent is effectively a rent paid on the land on which the leasehold property sits.

Ground rent normally applies to flats, however there has been a recent trend for developers to sell new build properties as leasehold.

Developers have also attracted criticism for including review clauses allowing for ground rents to be periodically increased e.g. doubling every 10 years.

As a result, leasehold houses can be problematic: See: Should I be wary of buying a leasehold house?

Gaynor Haliday, Legal researcher

Author:
Gaynor Haliday, Legal researcher