If you are a leaseholder, you are supposed to make ground rent payment to the land owner. This is regardless as to whether that is the head lessee or the freeholder. You are supposed to make this payment monthly as indicated on the terms and conditions of your lease. It will show the obligations of the two parties and will indicate the price that was originally paid for the property. If it is a new block of flats that have been built, it is the duty of the developer to indicate the monthly ground rent on each of the flat together with an asking price.

Amount to pay

When it comes to the amount of the ground rent to pay, this can differ depending on the kind of property. Therefore, the amount that you are supposed to pay will be determined by the property you have leased. Some will go for a higher price while others will go for a more reduced price. You are supposed to pay on monthly basis. All this will be clearly indicated on your lease. The most important thing when it comes to payment is to ensure that adhere to the terms set.

Asking for the ground rent

Another thing you should note is that there is a set way of asking for ground rent payment. It should be asked using a certain legal demand notice. In case, the notice is not served in the proper way, it is possible for the ground rent to be legally withheld. The legal notice provided include the name of the lessee, the period that is covered by the demand, the amount the lessee should pay, the address and name of the freeholder or the agent managing the property and the date by which the ground rent should be paid.

What happens if you fail to pay?

It is good to put in mind that if you fail to make payment of the ground rent even after you have received the legal demand notice, it is possible for your landlord to take you to court in order to recover the debt. In more serious cases, the landlord has the right to trigger forfeiture proceedings and try to regain back the property. This can happen if you own more than what is included in the agreement or if you have debt lasting for a long duration of time becaise this shows that you have neglected making the payment and gone against the terms set on the lease.

In order to get your head around these complications of ground rent, there are certain things you should do. In case you are purchasing a flat in residential block, it is vital that you ask for comprehensive legal advice on the obligations of your leasehold. This is where you need to work with a reputable property management experts who understand all the legal obligations you have with your landlord. Such experts also have robust processes and systems put in place to make sure that the right notices are provided when demanding for ground rent payment.