What is Ground Rent
Ground rent is an ongoing cost, usually charged to the owner of a leasehold property and paid to the landlord under the terms of a lease. It can sometimes be referred to a chief rent.
Sometimes ground rent may be referred to as a ‘peppercorn’ rent which usually means that it is such a small or nominal value that in practice it is never actually demanded by the landlord, but this will not always be the case. Generally a demand for a monetary ground rent is legally required to be paid. It may also be reviewed and increased under the terms of the agreement.
Failing to pay could mean the landlord reclaims the property for failing to adhere to the agreement.
You should always refer to the lease and any other related agreements to confirm what applies to the specific property you are buying. This information will be obtained from the seller or one of the other organisations involved in ownership of the property.
Please note that all information provided in this FAQ is for general reference only. It should not be used as a sole or definitive source, nor is it intended to be used for decision making in place of appropriate advice from a qualified legal professional. As such the information is provided as-is and Brevis cannot accept any responsibility or liability for any loss or damage resulting from any errors or ommission in, or any reliance on, information contained in this guide.