Ground rent
A yearly payment a leaseholder makes to the freeholder under the lease. For most new long residential leases since 30 June 2022 it is limited to a peppercorn (nothing).
In short: Ground rent is a sum the lease requires the leaseholder to pay the freeholder each year. The Leasehold Reform (Ground Rent) Act 2022 set ground rent at a peppercorn, in effect zero, for most new long residential leases granted from 30 June 2022. Older leases keep the ground rent they state.
Selling a homeMoney, tax and insurance
英格兰。 于 5 October 2026 对照法律进行核查. 信息,非法律建议。
What to check in an older lease:
- The amount and when it is due (the freeholder must send a formal demand before it is payable).
- Review clauses: rents that double every 10 or 15 years can make a flat hard to sell or mortgage.
- Lease extension: a statutory lease extension adds 90 years and reduces the ground rent to a peppercorn.
The ground rent on a flat a landlord lets is the landlord's cost, not the tenant's. When selling, the ground rent is part of the material information buyers need.
Related: Leasehold, Service charge
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