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.
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.
