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.