In order for a lease to be legally enforceable there needs to be 'valuable consideration'.
Ground rents can be high and in recent years there has been much controversy around ground rents.
Historically, ground rents were very low - so much so that some freeholders and landlords asked for an actual peppercorn rather than money.
Although a freeholder could still technically ask you to pay an actual peppercorn, peppercorn rental has evolved to mean no ground rent is payable.
Existing leases may already have a peppercorn rent. If you choose to extend your lease using the formal Section 42 route, your ground rent will be reduced to a peppercorn rent as part of the process.
Chris Salmon, Director
About the author
Chris Salmon is a co-founder and Director of Quittance Legal Services. Chris has played key roles in the shaping and scaling of a number of legal services brands and is a regular commentator in the legal press.