What are the potential consequences of non-payment of ground rent?

The potential consequences of non-payment of ground rent include lease forfeiture, legal action, and penalty charges. When a leaseholder fails to pay ground rent, the landlord is typically entitled to take serious actions to enforce the terms of the lease. This can include initiating legal proceedings to reclaim unpaid amounts or even to forfeit the lease entirely, which means that the leaseholder could lose rights to the property.

Forfeiture is a significant consequence because it can lead to the loss of the property without compensation. Legal action may also result in additional costs for the leaseholder in the form of court fees or legal fees, along with potential penalty charges that may increase the overall financial burden. This underscores the seriousness of fulfilling ground rent obligations in a leasehold agreement.

In contrast, options like continuation of the lease agreement or a reduction in lease term do not typically result from non-payment of ground rent; in fact, the opposite is true. Failure to pay ground rent jeopardizes the stability of the lease. An increase in maintenance responsibilities is also generally unrelated to the non-payment of ground rent and would depend on the specific terms of the lease rather than serving as a direct consequence.