- 09 March 2021
- Commercial Real Estate
What is ground rent?
Originally, it was rent that was supposed to reflect only the value of the ground that was being let, ignoring any building on it. The term is now frequently used to mean a low or nominal rent, usually one paid under a long lease that was granted in return for a premium. The landlord gets a capital sum for the lease, so there is no reason for the tenant to pay a full market rent for the property as well.