Ground Rent

Your Lease will provide for the Ground Rent to increase in the future (generally every 25 years). If this results in your Ground Rent amounting to more than £1000 you should seek legal advice from a Solicitor.

The issue with a lease which includes a doubling of ground rent every time it increases is it could:

  • be costly to you as the prices increase (although as it gets more expensive this won’t be during your life time);
  • stop a future buyer from getting a mortgage as mortgage lenders do not like doubling ground rent clauses (it might even prevent the current owner from remortgaging);
  • cause an issue on sale as the buyer doesn’t want to buy a property with ground rent that doubles; or
  • reduce the property’s value (the ground rent liability makes the property less valuable).

If the ground rent in London is or becomes greater than £1,000 and £250 outside of Central London, it will fall under the category of an assured tenancy under the terms of the Housing Act 1998 with certain exclusions.

If this is the case, the grounds upon which the freeholder can claim repossession for unpaid rent are easier.

For more information on Ground rents please see:

Articles about ground rent: