1. What is RPI Ground Rent Increase?

The RPI (Retail Price Index) Ground Rent Increase is a common method for calculating periodic increases in ground rent for leasehold properties. It uses the RPI inflation rate to determine how much the ground rent should increase.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

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

Explanation: The calculation multiplies the current ground rent by the RPI percentage to determine the increase amount.

3. Importance of Ground Rent Calculation

Details: Accurate ground rent calculation is crucial for leaseholders to understand their future financial obligations and for freeholders to ensure proper income from their properties.

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 (RPI) is a measure of inflation that tracks changes in the cost of a fixed basket of retail goods and services.

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

Q3: Can ground rent increases be capped?
A: Some leases include caps on ground rent increases, either as fixed amounts or percentage limits.

Q4: Is RPI the only method for calculating increases?
A: No, some leases use fixed increases, CPI (Consumer Price Index), or other formulas specified in the lease agreement.

Q5: What should I do if my ground rent increase seems excessive?
A: Consult with a property solicitor to review your lease terms and understand your rights and options.