buying, selling property UK

Guide to buying and selling property in United Kingdom

Frequently Asked Question - What is 'ground rent'?

The reason that leasehold is a rental contract; it is a matter of a rent on the land which is paid to the freeholder. This is compensated by the resident in the form of ground rent. The sum of ground rent payable must always be identified in the lease. In some cases, the ground rent will be set at a specific and unchanging amount. In other instances, the lease will identify the initial ground rent and increased amounts payable after specific periods of time.

The leaseholder in general has to shell out the ground rent on an annual basis or every six months. The landlord or the managing agent company employed by the landlord to run the building usually sends the leaseholder an invoice covering both ground rent and service charge.

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