What can be a consequence of failing to pay ground rent?

Failing to pay ground rent can lead to legal action by the freeholder, which is a critical consequence of this type of delinquency. When a leaseholder neglects to fulfill their obligation to pay ground rent, the freeholder has the right to initiate legal proceedings to recover the owed amount. This may include issuing reminders, pursuing court action, or even seeking forfeiture of the lease if the matter escalates. Legal action is a serious consequence because it not only results in potential financial liabilities for the leaseholder but can also lead to loss of rights associated with the leasehold property.

While other consequences, such as increased management fees or exclusion from property management decisions, may occur in certain circumstances, the most direct and immediate legal consequence for failing to pay the ground rent is the risk of legal action from the freeholder.