You may have to pay ground rent to your freeholder if you are a leaseholder. If you own a flat, you will usually have to pay ground rent. There are usually rules about how it is paid, when it can be increased, and what happens if you don't pay it.

• What is ground rent?
• How do I pay the ground rent?
• What happens if I don't pay it?
• Can the ground rent be increased?
• Buying out the ground rent

What is ground rent?

Ground rent is a fee that some homeowners have to pay as a condition of their lease. Ground rent is paid to your 'freeholder'. It is usually a small amount, around £50 or £100 a year.

In some cases, even though your lease mentions ground rent you may not have to pay  it. For example, if your lease refers to a 'peppercorn rent'.

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How do I pay the ground rent?

Information about how to pay your ground rent should be in your lease. Check to see what it says about:

• the amount of ground rent you have to pay
• when it has to be paid
• who it should be paid to

You will probably get a reminder from your freeholder when the ground rent is due. You must pay your ground rent even if your freeholder doesn't remind you. Always keep any proof of payment, such as receipts or bank statements.

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What happens if I don't pay it?

Your freeholder can take you to court if you don't pay your ground rent. You could lose your home, but this is rare. The freeholder must follow a special legal procedure (forfeiture proceedings) to evict you. Your freeholder may be committing a criminal offence if the forfeiture proceedings aren't followed.

Try to pay off what you owe before the freeholder applies for a court hearing. You will have to pay the legal costs as well as the ground rent if you don't. When you pay what you owe:

• the legal action will stop, and
• your lease will continue as before

You will have at least 28 days to pay after the hearing. If the court orders you to pay and you don't do so in time, the freeholder can evict you.

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Can the ground rent be increased?

Your ground rent can normally only be increased if:

• you sell the property, or
• you agree to the increase, or
• the lease says the ground rent can be increased

Most leases say the ground rent can be increased after a certain number of years. Your lease should give information about how often this can be done and how much notice the freeholder has to give you.

Get advice if you have been threatened with eviction or your ground rent has been increased unfairly.

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Buying out the ground rent

You are usually able to buy the freehold of your house. You will own your property outright and no longer have to pay ground rent to the freeholder. You usually can't buy the freehold to a flat but you may be able to negotiate with your freeholder. You usually have to pay nine times the annual ground rent.