What is ground rent?
Ground Rent is a fee you pay to the owner of the land and/or the remaining parts of the building where your property is located. It is often a condition of buying your home.
With a leasehold property, you will own the part you live in, however, the freeholder will own the land the property is on along with any communal areas.
If you want to purchase a leasehold property, you may find there are some additional fees to pay, one of these is ground rent.
The cost of ground rent can vary from a tiny sum (known as a peppercorn) or a large sum that can increase over time.
Generally, acceptable ground rent limits are up to £250 outside of greater London or £1000 within greater London per year.
Whilst most old leases will keep ground rent within the above limits, over the last 25 years some developers and landlords have commenced leases on properties and escalated the payable ground rent above acceptable limits.
Will I have to pay for it?
If you're unsure, it will be worth checking with your estate agent, as they will be able to tell you if you will need to pay ground rent.
Does Generation Home have any rules about ground rent?
We would be guided by the property valuers comments, if they thought the ground rent charge was acceptable then we would tend to agree with them.
Will my ground rent increase?
It is possible for ground rent to increase over time, however, the freeholder will let you know how much it will increase. You can ask this question when you view properties.