Understanding Ground Rent in Leasehold Properties
In the UK, most flats are sold as leasehold properties, meaning the buyer owns the property but not the land it stands on. Ground rent is a payment made to the freeholder (landowner) for the use of the land.
Historically, ground rent was a nominal charge of a few pounds per year, but in recent years, many developers have introduced high and escalating ground rents, making leasehold ownership more complex and expensive.
Why Is Ground Rent Over £250 a Concern?
A ground rent exceeding £250 per year (£1,000 in London) is more than just an extra cost—it can create legal and financial risks that affect mortgage approvals, resale value, and long-term affordability.
