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Ground rent (UK): what it is and why it can matter to lenders

Ground rent is a leasehold charge set out in the lease. Some lenders assess ground rent terms because they can affect risk and resale.

Published: 23/04/2026 • Last verified: 23/04/2026

The short answer

Ground rent is a charge some leaseholders pay to the freeholder, set out in the lease. It’s separate from service charges (which pay for maintenance and services).

It can matter to mortgage lenders because certain ground rent terms (for example, a high starting amount or aggressive increases) can make a property harder to sell or refinance. Lender criteria vary, so the lease terms need checking.

A tiny example

Example (illustrative):

  • Ground rent starts at £250 per year.
  • The lease says it doubles every 10 years.

Even though £250 per year might feel manageable today, the long-run pattern can become significant. Some lenders set criteria around ground rent terms, so a conveyancer will often flag it for lender review.

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