11. Ground rent

Ground rent is a periodic payment made by a leaseholder to the freeholder or landlord for the use and occupation of the land on which the leasehold property is situated. It is a common feature of leasehold ownership, particularly in situations where the property is held under a long lease, such as leasehold flats or apartments. 

Here is a more detailed explanation of ground rent and where to find the amount: 

• Leasehold arrangements: In a leasehold arrangement, the leaseholder owns the property but not the land it sits on. The land is typically owned by the freeholder or landlord, who grants the leaseholder the right to occupy the property for a specified period, subject to certain conditions and obligations. 
• Payment for land use: Ground rent is the payment made by the leaseholder to the freeholder or landlord for the use of the land on which the property is located. It is a contractual obligation outlined in the lease agreement and is usually payable annually or semi-annually, although the frequency may vary depending on the terms of the lease. 
• Fixed or variable amount: Ground rent may be a fixed amount specified in the lease agreement or it may be subject to periodic reviews or adjustments based on specific formulas or indices outlined in the lease. The amount of ground rent is typically relatively small compared to other housing expenses but can vary depending on factors such as the location and value of the property. 

Where to find the amount of ground rent 

• Lease agreement: The amount of ground rent payable by the leaseholder is typically specified in the lease agreement or lease document provided by the landlord or freeholder. This document outlines the terms and conditions of the leasehold arrangement, including the amount of ground rent, the frequency of payments, and any other relevant provisions. 
• Rent demand notices: The landlord or freeholder may issue rent demand notices to the leaseholder, specifying the amount of ground rent due and the payment deadline. These notices may be sent annually or semi-annually, depending on the terms of the lease. 
• Service charges statements: In some cases, ground rent may be included as part of the service charges payable by leaseholders for the maintenance and management of communal areas or services in leasehold developments. Leaseholders can review service charges statements to determine the breakdown of charges, including ground rent. 
• Contacting the landlord or managing agent: If the leaseholder is unable to locate information about the ground rent amount, they can contact the landlord, freeholder, or managing agent responsible for the property management to request clarification and obtain details about the ground rent payable.