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In this case a premise was rented by the Duke of Westminster to someone in Pimlico (reasonably central London, at least by today's standards, and a fairly expensive area if i'm not mistaken) for £10 per quarter. I ran it through an inflation calculator and that's worth simply about £500 in today's money. That still only works out to about £42 per month. And apparently that was a place that was big enough to run a brothel out of!

What am I missing here?

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  • 2
    Why is it necessary for this place to have been rented out at market rates?
    – SPavel
    Feb 18 at 2:44
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    The £40 was the annual "ground rent". The original lease in 1930 would have involved the purchaser paying a substantial capital sum to the Duke, to "buy" the lease, and £40 per year thereafter. The lease was later sold by the original tenant (or a successor) to the gentleman occupying it in 1972. It seems he paid £9,000 to his predecessor for it in 1957. In effect he bought the flat for £9,000 subject to a £40 pa payment. The £40 may have started lower and then risen linked to inflation. This is a common arrangement in English property law.
    – davidlol
    Feb 18 at 10:43
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    @Seekinganswers gov.uk/guidance/leasehold-reform-ground-rent-act-2022
    – Dave Gremlin
    Feb 18 at 15:47
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    Yes. It is always difficult to ask a question without knowing at least some of the answer. !! Here is a link to the Leasehold Reform (Ground Rent) Act 2022. gov.uk/government/publications/… I'm afraid I'm not an expert but recognised that the £40 in your question was not really pure rent. Hope it helps, sorry I can' be more help.
    – davidlol
    Feb 18 at 15:48
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    And @DaveGremlin sorry for the silly question, after asking it it only took a moment for me to think to google "ground rent leasehold reform 2022" to find an act of nearly an identical name complete with statutory guidance and a host of blogs introducing it. Thanks anyway for the link.
    – Seeking answers
    Feb 18 at 15:50

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