Q. Why do I have to pay Ground Rent?
If you live in a leasehold property, you have purchased your home for the remainder of the term of the lease – often 99, 125 or 999 years. Under the terms of your lease there is a ground rent payable to the owner of the land and the building, the freeholder. The amount of ground rent, how it is paid and when it will increase is stated in the lease and will not change if the owner of the freehold changes.
Hobdens often collect ground rent on behalf of the freeholder as a service to them but in some cases, the freeholder will collect this themselvesRETURN TO FAQ’s