There has always been a myth about ground rents in that people think you can’t go wrong buying them and owners can literally name their price when selling them. Ground rents today are still desirable but many aspects of ground rent investments must be considered very carefully. How much ground rent do the tenants pay, who manages the block, is the management company doing its job properly, are there any rent and service charge arrears, are there any shortfalls for the owner of the block to meet, how is the insurance dealt with etc.

Be careful when buying ground rents and make sure not to fall into the trap of being sucked in to paying an over inflated price just because what you are buying is called a ground rent.