What is ground rent mentioned in the lease for my leasehold property?
Because leasehold is a tenancy, it’s subject to a rent on the land which is paid to the freeholder. This is paid by the leaseholder in the form of ground rent. The amount 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 normally has to pay 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. Find out more about house buying, house selling and conveyancing. Learn more about leaseholds and leasehold property.
