Ground Rent

Ground Rent in United Kingdom

Definition of Ground Rent

In accordance with the work A Dictionary of Law, this is a description of Ground Rent : A rent reserved by a long lease of land. For example when a house or flat is sold on a lease for 99 years, the lessor may reserve a small annual rent payable throughout the term as well as the capital price payable on the grant of the lease. In essence, a ground rent ignores the value of the buildings on the land. Building leases (*building lease) are sometimes granted in return for a ground rent rather than a capital sum.


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