Ground Rent

An annual charge paid by a leaseholder to the freeholder for the use of the land. The Leasehold Reform (Ground Rent) Act 2022 set ground rent to zero (a peppercorn) for most new residential leases granted from 30 June 2022 onwards. Existing leases may still have ground rent obligations.

Related terms

LeaseholdFreeholdService Charge (Property)

Related guides

Leasehold and Service Charge Disputes

Owning a leasehold property means owning the property for a fixed term while the freehold — the land — is owned by someone else (the freeholder or landlord). Leaseholders pay ground rent (now largely abolished for new leases) and service charges for the maintenance and management of the building. Disputes about service charges, management quality, and lease terms are common, but leaseholders have legal rights and access to the First-tier Tribunal (Property Chamber) to resolve them.

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