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Last edited 02 Feb 2018
The lease should set out:
- The amount of the ground rent.
- The payment dates (usually annual).
- The circumstances under which the ground rent can be increased.
- The name of the leaseholder.
- The period covered.
- The amount.
- The name and address of the freeholder.
- The name and address of the managing agent if payment is to be made to them.
- The due date.
- 'Notes for Leaseholders' informing leaseholders of their rights and responsibilities.
Failure to pay ground rent can result in legal proceedings, and in very extreme circumstances could lead to eviction.
As ground rent is typically very low, some landlords can fail to collect it, however, they can only recover it going back 6 years.
Ground rent can generally only be increased if the lease permits, or if the leaseholder agrees to an increase, or if the property is sold.
If a leaseholder extends a lease under the Leasehold Reform, Housing and Urban Development Act 1993 they then only have to pay a ‘peppercorn rent’ effectively a ground rent of nothing. If a lease is extended by negotiation ground rent may still be payable.
 Related articles on Designing Buildings Wiki
- Break clauses in leases.
- Buy-to-let mortgage.
- Housing tenure.
- Lease Negotiations - Tenants Checklist.
- Licence to alter.
- Peppercorn rent.
- Property guardianship.
- Rent-free period.
- Rent review.
- Schedule of dilapidations.
- Scott schedule.
- Service charge.
- Vacant possession.
- What is a mortgage?
 External references
- The Leasehold Advisory Service. Service charges and other charges.
- Shelter. Ground rent.
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