Costs & Taxes
Ground Rent
Annual payment to freeholder for leasehold properties
Full Definition
Ground rent is an annual payment made by leasehold property owners to the freeholder. The Leasehold Reform Act 2022 caps ground rent at 'peppercorn' (effectively zero) for new leases. Historic leases may have escalating ground rents that can significantly impact property values. Always check lease terms before purchasing.
Related Terms
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Stamp Duty Land Tax (SDLT)
Tax paid when purchasing property over £250,000
LBTT (Land and Buildings Transaction Tax)
Scottish equivalent of Stamp Duty
LTT (Land Transaction Tax)
Welsh equivalent of Stamp Duty
Capital Gains Tax (CGT)
Tax on profit when selling investment property
Section 24 (Mortgage Interest Relief)
Restriction on mortgage interest tax deductions for landlords
Limited Company Buy-to-Let
Purchasing properties through a company structure