Every leaseholder is expected to pay an annual ground rent to the freeholder. For the older leases the amount to be paid one is supposed to pay is a small amount annually which can increase after every 25 or 33 years. But with the new leasehold houses, things have changed a little bit. Some leases have written clauses that allows the freeholder to increase the ground rent exponentially meaning that the leaseholder can become liable for additional charges and the homes can even become unsellable. Ground rent scandal incidents have come into this in recent years.

In our country, most of the flats are leasehold. It is very unlikely to find houses being sold on leasehold terms but there are still a number of leasehold houses including the ones that were built recently. In the past, the ground rent charges used to be just a few pounds per year but in the last 10 years things have drastically changed. Some developer are inserting some clauses in the contract that are really increasing the ground rent to absurd levels. This is one of the reason why there are a lot of ground rent scandal incidents in the recent years with over 12000 home owners complaining on not understanding how the ground rent escalated to such levels.

As many leasehold homes are being developed, the developers are offering the leases for much longer time as opposed to the ones we are used to. Nowadays you can find a lease that allows you to own the property for up to 999 years. The leases usually have a clause the outlines the ground rent to the person who purchases the home on leasehold terms. The ground rent for this buildings will cost you between 300 and 500 pounds. The ground rent to be added is set to be double the initial ground rent in like 10 years and it will keep doubling after every 10 years. So you can imagine the amount of money one will be paying in like the 70th year.