Ground rent

Ground rent is a payment made by a leaseholder to the owner of the land on which their property is built.

In the United Kingdom, ground rent is often used as a way to generate income for the landowner, as it gives them a regular stream of payments that lasts for the duration of the lease. Ground rents can be charged at either a fixed rate or a variable rate, and they may also be subject to increase in line with inflation.

Leaseholders are usually required to pay ground rent whether or not they reside in the property. However, there are some cases where ground rent can be waived – for instance, if the leaseholder is over 65 years old or lives in a property that has been adapted for their needs.