1. What is Ground Rent Increase?

Ground rent is a regular payment made by the owner of a leasehold property to the freeholder. The increase rate determines how much this payment will rise over time according to the lease terms.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Current Ground Rent — The current annual ground rent payment
• Increase Rate — The percentage increase (e.g., 5 for 5%)

Explanation: The formula calculates the new ground rent amount after applying the specified percentage increase to the current amount.

3. Importance of Ground Rent Calculation

Details: Understanding future ground rent payments is crucial for leasehold property owners to budget for future expenses and assess the long-term affordability of their property.

4. Using the Calculator

Tips: Enter the current ground rent amount and the percentage increase rate. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often does ground rent typically increase?
A: This varies by lease, but common patterns include every 10, 25, or 33 years. Check your lease terms for specifics.

Q2: Is there a limit to ground rent increases?
A: The increase terms are specified in the lease agreement. Some leases have fixed increases while others may be linked to indices.

Q3: Can ground rent increases be negotiated?
A: Once set in the lease, increases are typically fixed, but you may be able to negotiate a lease extension or variation.

Q4: What happens if I can't pay increased ground rent?
A: Failure to pay ground rent could lead to legal action by the freeholder, including potential forfeiture of the lease.

Q5: Should I be concerned about escalating ground rent?
A: Steep increases can affect property value and saleability. Seek legal advice if your lease contains potentially problematic terms.