1. What is Ground Rent Increase?

Ground rent is a regular payment made by a leaseholder to the freeholder of a property. The increase is typically calculated as a percentage rise over the current rent, as specified in the lease agreement.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Old Ground Rent — Current ground rent amount
• Rate — Percentage increase specified in lease

Explanation: The calculation applies a percentage increase to the existing ground rent amount to determine the new payment.

3. Importance of Ground Rent Calculation

Details: Accurate ground rent calculations are essential for leaseholders to budget for future payments and understand their contractual obligations under the lease terms.

4. Using the Calculator

Tips: Enter the current ground rent amount and the percentage increase rate specified in your lease agreement. 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 intervals are every 10, 25, or 33 years. Check your lease agreement for specifics.

Q2: Is there a legal limit to ground rent increases?
A: For newer leases (after June 2022), ground rent cannot exceed one peppercorn per year. For older leases, increases are governed by the lease terms.

Q3: What if my lease specifies a fixed amount increase?
A: This calculator is for percentage increases only. For fixed amount increases, simply add the specified amount to your current rent.

Q4: Can ground rent increase be negotiated?
A: Once set in the lease, terms are usually fixed unless both parties agree to vary them or statutory changes apply.

Q5: Should I seek professional advice about ground rent?
A: Yes, for any legal questions about your ground rent obligations or potential lease extensions, consult a property solicitor.