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You’re buying your dream home, everything is going great. It’s the perfect location, great open views and close to transport links for work. The day has arrived and its time to collect the keys to your home, you move in and all is well, maybe even too well….. But then you are hit with two words, ground rent!

When you looked over the property and you studied the lease there was no mention of your £150 annual ground rent and that it would double every 10 years. You just can’t afford to pay the doubling ground rent, so you try to sell the property.

It very well maybe the case that you can’t sell the property because of the doubling ground rent, you’re now stuck with a property you can’t sell and bills you may no longer be able to pay.

Speaking to the owner of the freehold about buying the freehold maybe the only solution. But some investors may want a considerable amount of money for the freehold, which isn’t an ideal resolution either. This is a problem for around 100,000 people in the UK named the ‘ground rent scandal’.

Peregrine Property

If you are unsure about ground rents then feel free to speak to us, it’s something we come across quite often so we’ll be able to help and offer advice every step of the way.

Ground Rent

You pay ground rent when you own a leasehold property, this is because you don’t own the land the property sits on, and the ‘ground rent scandal’ got its name due to unfair rent prices and leases making it extremely difficult of leaseholders to afford.

The charity Shelter recently stated typical ground rent can be anything up to £400 per year, however the average amount is between, £50-£100 per year.


Unfortunately, yes ground rent can affect the saleability of a property. If you are unsure on leasehold property contact the experts at Peregrine Property.





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