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What does Ground Rent mean?
In case of owning an asset/property/flat/land through leasehold, you have to pay a monthly ground rent to the freeholder. Or, it is also the rent you will pay towards the landowner, if he let you land with the purpose that you build your house on it.
A few decades ago, and up until 2002 when the Commonhold and Leasehold Reform Act came into force, there were many instances when the landowners/freeholders had unjust requirements from the lessees, by asking for too high prices in exchange for the rent. But the Reform Act comes and regulates this issue, so as to impose certain rules and restrictions. |