Ground rent
A periodic payment by a leaseholder to the freeholder.
2 min read · Updated 2 August 2026
Overview
Ground rent is payable by a leaseholder under a long lease. It matters to landlords who own leasehold flats: unpaid ground rent and service charges can lead to forfeiture action, and lease terms often restrict subletting or require freeholder notification.
Legal requirements
- Ground rent on most new residential long leases is restricted to a peppercorn.
- Subletting a leasehold flat usually requires notice to, and sometimes consent from, the freeholder.
Practical guidance
- Read the lease before letting — breach of a subletting clause risks the whole lease.
This wiki entry is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.