1. What is Ground Rent Increase?

Ground Rent Increase based on RPI (Retail Price Index) is a common method for adjusting leasehold ground rent payments. The increase is calculated by applying the RPI percentage to the current ground rent amount.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• RPI — Retail Price Index (inflation rate in percentage)
• Current Ground Rent — The existing annual ground rent amount

Explanation: The RPI percentage is converted to a decimal (divided by 100) and multiplied by the current ground rent to determine the increase amount.

3. Importance of RPI in Leasehold Agreements

Details: Many leasehold agreements specify that ground rent will increase in line with RPI, typically every 5, 10, or 25 years. Understanding these increases helps leaseholders budget for future payments.

4. Using the Calculator

Tips: Enter the RPI percentage (without % sign) and current annual ground rent amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is RPI?
A: The Retail Price Index is a measure of inflation that tracks changes in the cost of a basket of retail goods and services.

Q2: How often does ground rent typically increase?
A: This varies by lease, but common periods are every 5, 10, or 25 years. Check your lease agreement for specific terms.

Q3: Can ground rent increases be capped?
A: Some modern leases include caps on increases, but older leases may allow unlimited increases tied to RPI.

Q4: What's the difference between RPI and CPI?
A: CPI (Consumer Price Index) is another inflation measure that typically rises more slowly than RPI. Some newer leases use CPI instead.

Q5: Can I challenge a ground rent increase?
A: You can check if the increase follows the terms in your lease. For legal advice, consult a property solicitor.