Why Do I Pay Ground Rent?

Why Do I Pay Ground Rent?

History of Ground Rent
The ground rent system dates back to the 18th century. The idea was to keep homeownership costs low by the buyer only paying for the structure/house while renting the land for a fixed amount.

What does ground rent pay for?

Ground rent is exactly what it sounds like - money leaseholders pay the freeholder to occupy the land a leasehold property is built upon. Ground rent must only be paid if it's detailed in the lease. If it isn't, the landlord won't be able to recover any ground rent from you.

What happens if you don't pay ground rent?

If you don't pay your ground rent, the freeholder can apply to the court for repossession of the property. This type of action is known as 'forfeiture'. The freeholder can only start taking court action if: You're three or more years in arrears with your ground rent.

Sarah Jenkins
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Sarah Jenkins

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.