What is Ground Rent? Who, Why and How can I pay it?
Ground rent is an annual fee paid by the lease holder for the use and occupation of the land parcel. Each land parcel has its own individual ground rent written on the lease of plot. The ground rent is payable on the second residential plot. All commercial sites are required to pay the ground rent. Put another way, all the primary residential sites are NOT liable for paying the annual ground rent, but owners must come to the LAA to fill exemptions forms from ground rent. Primary residential site means the site in which the land owner resides on, on a day-to-day basis. Ground rent first came into being through the Land Act 1979 Section 69. The Land Act 2010 built on this through Section 77of the Act.
Ground rent is paid annually and can be paid at any time of the year as long it is before the 31st March of every year. It can be paid in installments if arrangement with the LAA is made prior to due date of the payment
How is ground rent calculated
There are different descriptions of the land uses as stated below:
R means Residential user
C means Commercial user
I means Industrial user
W means Warehouse user
P Petroleum Products retail or wholesale
H means Hotels or guest houses
Changes in ground rent rates and penalties
|YEARS||YEARS CALCULATED FROM||LEVY/PENALTY|
|1991||1992/93||5% of GR or M10 whichever is greater|