Renter misses £5 payment and ends up with £1700 bill

Posting on the r/HousingUK forum on Reddit, a user explained their troublesome situation whilst also admitting 'I am an idiot'.

They said: "As the title says I stupidly missed some ground rent payments and now this has been ballooned into over £1,700 . Is there anything at all I can do ?

Pension Credit can give you extra money to help with your living costs. It can also help with housing costs such as ground rent or service charges.

You might get extra help if you’re a carer, severely disabled, or responsible for a child or young person. Find out more 👇 https://t.co/enOc0EpQZ8

— Winchester City Council (@WinchesterCity) October 24, 2024

"Yes I admit being an idiot. I was away and missed the 2 payments. They started sending me letters demanding can't remember exact amount think it was just over £300. I refused, spoke with them multiple times to come to an agreement and they keep on refusing. and now here we are to over £1700".

What is ground rent?

Ground rent is a fee paid by a leaseholder to the property's freeholder for the right to occupy the land the property is built on. 

It's a common arrangement for flats and maisonettes, where the leaseholder owns the building but not the land.

The Reddit thread then exploded with people arguing over who was in the wrong.

One user said: "how did you forget to pay the ground rent for 3 years?"

To which another replied: "How could anyone possibly forget to pay this one incredibly archaic, UK specific annual £5 bill?!! It boggles the mind."

Recommended reading:

Budget 2024: What it means for pensions and what to expect

Green retrofitting ‘can improve property values and rental yields for landlords’

Renters’ Bill aims to drive out disreputable landlords, says minister

Why do we pay ground rent?

As a leaseholder, you need to pay ground rent because the freeholder owns the land, and you pay them to ‘lease’ the land on which your property is located.

While there is thought to be reform underway on ground rent in the UK, currently leaseholders lease the land and the actual property separately.

Is ground rent the same as rent?

Ground rent is not the same as rent. Regular rent – what tenants, landlords and estate agencies usually refer to as ‘rent’ – is the monthly charge for living in the owner’s property.

Freeholders tend to charge ground rent in addition to this.