ground rent


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ground rent

The legally-contracted rent paid annually according to the terms of a ground lease.
References in periodicals archive ?
George Walker, Partner and Auctioneer, said: "The catalogue offers a wider mix of assets than usual, including long-let ground rents and a good choice of industrial investments.
While this has the initial attraction of a lower capital payment at the outset and the starting ground rent of, say, PS300 appearing reasonable, by the end of the lease that ground rent figure could have risen to more than PS38,000 per year.
By the end of the full 125-year lease, which started in 2008, the ground rent will soar to an eye watering [pounds sterling]307,200 annually.
Small print clauses in leaseholds can double ground rent every 10 years
Some banks have already refused to offer mortgages at our development due to the existence of the onerous ground rent terms.
But those stuck with it may find homes almost unsellable except at a huge discount, because some lenders, including Nationwide, refuse to grant mortgages on properties with onerous ground rent clauses.
It meant their ground rents, which are paid to the freehold owners of the property, doubled every 10 years.
Communities Secretary Sajid Javid has set out plans to ban new build houses being sold as leasehold as well as restricting ground rents to as low as zero.
Palace said the current ground rent payable to Leeds City Council is GBP 23,786 per annum so the net income received is GBP 172,464 per annum.
The first leasehold mortgage, leased from the City of New York, was for a term of ten years at an attractive interest rate given the complexity of the entity, security, ground lease, expiring tax abatement and to-be-determined future ground rent," explained Cotsalas.
However, owning a humble beach hut can be a costly luxury because most are effectively leasehold, being liable for a sizeable ground rent, on a yearly licence from the local council.
There is also a service charge, ground rent and ground rent for the allocated car parking space.