What is ground rent?
Ground rent is a payment made by the leaseholder to the council as a condition of the lease. It is usually a small amount (such as £10).
The payment of ground rent is specified by the lease. The lease also says how much should be paid and when ground rent payment is due.
Some leaseholders don’t have to pay any money in ground rent but most leases will still mention it. If no payment has to be made it is usually called a ‘peppercorn rent’.
When does ground rent have to be paid?
The lease specifies how much ground rent is and when it should be paid. It is normally due either once a year or half yearly.
Leaseholders are not legally liable to pay ground rent until the council has sent an invoice. The invoices are posted to the address of the leasehold house or flat unless the owner asks the council to send them to a different address.
The invoice must be written and must include:
- the leaseholder’s name
- the period the bill covers
- how much has to be paid
- the date on which ground rent is due - this cannot be before the due date in the lease and it should be at least 30 days (and no more than 60) after you receive the bill.
The invoice must be sent with Notes for Leaseholders which inform you about your rights and responsibilities.
How to pay ground rent
Details of how to pay ground rent are written on the back of the invoice.
Ground rent can also be paid by Bank Standing Order. For details please get in touch with the Leasehold Team:
Telephone Number: 0121 303 2147 / 2148