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?

  • 2
    Why is it necessary for this place to have been rented out at market rates?
    – SPavel
    Feb 18 at 2:44
  • 9
    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
  • 3
  • 2
    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
  • 3
    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. Feb 18 at 15:50


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Browse other questions tagged or ask your own question.