1. What is Ground Rent RPI Increase?

Ground Rent RPI Increase refers to the adjustment of ground rent payments based on the Retail Price Index (RPI), a measure of inflation. This is a common method for increasing ground rent in leasehold agreements.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( RPI \) — Retail Price Index (inflation rate as percentage)
• \( Current Ground Rent \) — The current annual ground rent amount

Explanation: The calculation multiplies the current ground rent by the RPI percentage to determine the increase amount, which is then added to the original rent to get the new ground rent.

3. Importance of Ground Rent Calculations

Details: Understanding ground rent increases helps leaseholders budget for future payments and assess the long-term costs of their leasehold property.

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 10, 15, or 25 years. Check your lease agreement for specifics.

Q3: Can ground rent increases be capped?
A: Some leases include caps on increases (e.g., maximum 10% regardless of RPI). Always review your lease terms carefully.

Q4: Is RPI the same as CPI?
A: No, RPI (Retail Price Index) and CPI (Consumer Price Index) are different measures of inflation, with RPI typically being higher.

Q5: What can I do if my ground rent increases excessively?
A: You may be able to negotiate with the freeholder, extend your lease, or in some cases purchase the freehold. Consult a property solicitor for advice.