Finance and Billing

Responsible for collecting all LAA revenue and advicing clients on status in relation to Ground Rent payments. Provide information on property market values.

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 77 of 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

 The rates of the ground rent as per “Lesotho Government Gazette dated 15th February 2013” are as follows: 
Grade R C I W P H
1 0.29 0.79 0.60 0.30 0.60 0.60
2 0.24 0.57 0.38 0.20 0.38 0.38
3 0.21 0.35 0.23 0.10 0.23 0.23
4 01.17 0.24        
5 0.12          
6 0.08          

Changes in ground rent rates and penalties

1980 1980/81 M1.00
1991 1992/93 5% of GR or M10 whichever is greater
2011 2011/12 15.25%
2013 2013/14 19.92%
2014 2014/15 20.25%
2015 2015/16 20.44%
How can we help you?

Contact us at the LAA offices nearest to you or submit an inquiry online.


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