Ground Rent Explained

Ground Rent is a sum defined in your Lease and is a payment to the freeholder or superior leaseholder.

Your Lease may also have a provision whereby this sum increases over time.

Ground Rent is collected either by the freeholder or superior leaseholder directly or through an agent which may, or may not, be Managed Partnerships Limited.

It is very important to remember that Ground Rent is completely separate from Service Charges and Ground Rent payments cannot be used for Service Charge expenditure.

It is not just flat owners that pay Ground Rent. The owners of freehold properties sometimes have to pay a similar charge. This is usually known as a “Rent Charge”.