Glossary definition
Ground Rent
A rent payable by a leaseholder to the freeholder for the use of the land on which the property stands. The Leasehold Reform (Ground Rent) Act 2022 effectively banned ground rents on most new long residential leases granted after 30 June 2022, restricting them to a peppercorn (zero financial value).
Definition
A rent payable by a leaseholder to the freeholder for the use of the land on which the property stands. The Leasehold Reform (Ground Rent) Act 2022 effectively banned ground rents on most new long residential leases granted after 30 June 2022, restricting them to a peppercorn (zero financial value). For existing leases with escalating ground rents, the Act has prompted significant valuation adjustments and affects the exit strategy for developers selling leasehold units, particularly in flatted schemes.
See also
Closely related terms.
Valuation
A professional assessment of a property's market value, carried out by a qualified surveyor for lending, investment, or transactional purposes.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
Net Development Value
The gross development value of a completed scheme minus all costs of sale including estate agent fees, legal fees, and marketing expenses.
Further reading
Guides that touch this term.
Guide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
UK Development Finance Market 2026: Rates, Trends and Outlook
A comprehensive overview of the UK development finance market in 2026, covering current interest rates, lender appetite, emerging trends, and what developers should expect over the coming 12 months.
9 min read readRead
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