What is ground rent?
Ground rent is a payment you make to the freeholder of your property. It’s usually a condition of your lease and may only be around £100 to £200 a year. Information on paying ground rent should be included in your lease.
What happens if I don’t pay my ground rent?
If you don’t pay your ground rent, the freeholder can apply to the court for repossession of the property. This type of action is known as ‘forfeiture’.
The freeholder can only start taking court action if:
- You’re three or more years in arrears with your ground rent
- You owe £350 or more worth of ground rent, service charges and administration charges
A different process takes place if you're occupying a property as your only or principal home, and your annual ground rent is more than £250 (or £1,000 if you live in London). In these cases, you should contact us for advice.
Bear in mind that ground rent is only payable on demand. This means that even if it's included in the lease, you don't have to pay until your landlord sends you a bill.
You’re normally given four weeks to repay the arrears. If you’re able to pay what you owe, any legal action stops and your lease will continue as normal.
Failing to pay ground rent arrears after the court has ordered you to pay could result in the freeholder using bailiffs (enforcement agents) to evict you.