Ground Rent

Ground rent is a fee paid by a leaseholder to the freeholder or landowner for the use of land on which a property is built. It's typically charged annually and can be a fixed amount or increase over time based on the lease agreement. Ground rent is separate from other costs like mortgage payments or service charges. The concept is common in leasehold property arrangements, especially in the UK. While often modest, some leases impose high or escalating ground rents, which can affect the property's overall value and affordability for future owners.