A token or nominal rent. The name comes from leases where the rent is one peppercorn a year. Other kinds of token or nominal rents, such as £1, or a red rose each year, may also be referred to as peppercorn rents. A peppercorn rent is often found where a premium has been paid for a lease.
Similarly, why have a peppercorn rent?
In order to enforce the terms of a lease a ground rent must be set, but in the past many leases had tiny ground rents so in some cases freeholders stipulated that the rent should, instead of money, be a peppercorn (as used in pepper grinders) to save them the trouble of collecting the money.
Additionally, what happens at the end of a 999 year lease?
When the lease comes to an end, the ownership of the property automatically goes back to the freeholder. All flats in England and Wales will be leasehold properties. The leases are usually for a term of 99 or 125 years, but there are some leases which can be for 999 years.
What is the leasehold scandal?
Leasehold & ground rents scandal. Due to onerous clauses in leases, a scandal has emerged in recent years, meaning roughly 12,000 leaseholders are facing ground rents – which they pay to the freeholder – that double in cost, usually every 10 years, but sometimes more frequently.
Is it hard to sell a leasehold property?
Not owning the freehold – and facing issues such as ever-increasing ground rents and asking for permission to make cosmetic changes to a property – makes it difficult for leaseholders to sell in the future. Some 31% of those polled, in fact, said they are struggling to find a buyer because they own a leasehold home.