What is ground rent? The ground rent of a property is paid by all leaseholders to the freeholder as per the terms of the lease. The ground rent is separate from the service charge in that it is payment for the leasing of the freeholder’s land, and is paid directly to them, not the managing agent.
Typical ground rent is usually up to £400 per year but can be more, depending on the terms of your lease. There are no set guidelines to influence how much ground rent should cost a leaseholder.
The typical ground rent should not cost more than £500 per year but can change depending on the factors in the lease and location (for example, properties nearer to and in the capital may have ground rents closer to £1000).
Note that the Leaseholder Reform Act 2022 discontinued the charging of significant ground rent on residential leases with at least 21 years in England and Wales. Read more about this legislation change here.