Ground Rent
What is Ground Rent?
Ground rent is a periodic payment made by leaseholders to the freeholder for the use of the land on which their property is situated. Typically set at a fixed annual amount, ground rent is a legal obligation detailed in the lease agreement. This fee is separate from any service charges or maintenance costs and serves as compensation for occupying the land.
Who is Responsible for Paying Ground Rent?
The responsibility for paying ground rent falls on the leaseholder. This obligation is clearly outlined in the lease agreement, and failure to pay ground rent can lead to legal consequences, including potential forfeiture of the lease. It’s crucial for leaseholders to understand their payment obligations and adhere to the specified schedule to avoid any penalties.
How Does the Management Company Assist?
A professional management company plays a vital role in ensuring ground rent is charged and collected on time. Here’s how we help:
Accurate Record-Keeping: We maintain detailed records of all lease agreements, including ground rent amounts and payment schedules.
Timely Invoicing: We ensure that ground rent invoices are sent to leaseholders well in advance of the due date, allowing ample time for payment.
Reminders and Follow-Ups: To prevent missed payments, we send regular reminders and follow up with leaseholders as the due date approaches.
Legal Compliance: We ensure that all ground rent collection practices adhere to current legislation, safeguarding both leaseholders and freeholders.