Ground Rent and Leases
There are many different ways in which you can come to inhabit or own a property. Some properties have a different kind of lease known as a long lease. These can extend for many decades, even centuries, with a low sum as annual rent. This is what we know as ground rent. Here are some interesting facts:
- The most common terms for rent are 99, 125 or even 999 years.
- The annual rent payments are only if the freeholder has asked you to pay.
- The annual payments vary but are generally very low, anywhere from £10 to £500.
- In the event that the lease is extended, ground rent no longer had to be paid.
- Generally ground rent is fixed or escalating (payments increase after a term through the lease)
Are Ground Rent properties common?
There are approximately 4.2 million properties that come under this heading in the UK. This means that there’s no shortage of properties that come under or could benefit from this system.
How do I know if a property charges Ground Rent?
Most Ground Rent leases are associated with what’s called a long lease. Before you look to rent such a property, the owner or estate agent should make you aware of this.