Service charges and other issues
A guide to service charges, administration charges, ground rent, recognised tenants associations and forfeiture.
You need to check the lease as the ground rent provision will be stated there. The landlord cannot insist that you pay more than the rent set out in the lease or change the provisions in relation to ground rent.
The ground rent can be fixed in the lease or increase at fixed times and amounts.
For example, at the beginning of the lease, the ground rent may be £50 every year. Then it can increase after 33 years to £100 per year and so on. Or it may increase in accordance with a formula such as a percentage of the rental value of the property.
Alternatively, any increase may be based on a formula like the retail prices index.
For residential leases granted on or after 30 June 2022, with certain exceptions, no rent can be charged to the leaseholder.
More information you might find useful:
- Ground rent and its escalation
- Service Charges and other issues: Ground rent
- More Frequently Asked Questions on Ground Rent
- Click here to download the form of rent demand notice
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