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ground rent

A rent reserved by a long lease of land. For example when a house or flat is sold on a lease for 99 years, the lessor may reserve a small annual rent payable throughout the term as well as the capital price payable on the grant of the lease. In essence, a ground rent ignores the value of the buildings on the land. *Building leases are sometimes granted in return for a ground rent rather than a capital sum.

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