Skip to main content
GOV.UK uses cookies to make the site simpler. Find out more about cookies
GOV.UK
Search
Search
Menu









Search
Departments
Worldwide
How government works
Get involved
Policies
Publications
Consultations
Statistics
Announcements
Housing – guidance
Rentcharges
From:
Department for Communities and Local Government
First published:
15 November 2012
Last updated:
21 October 2015, see all updates
Part of:
Freehold and leasehold property and Housing
What rentcharges are, how to apply to pay only your share of ('apportion') a rentcharge, or apply
to buy out ('redeem') your rentchange.
Contents
1.
2.
3.
4.
5.
6.
What is a rentcharge?
Who has to pay the rentcharge?
How to redeem your rentcharge
How to legally apportion your rentcharge
Apportioning ground rents on leasehold houses
How much does it cost?
7. Contact
Too much detail?
See these quick guides
Buying or selling your home
What is a rentcharge?
A rentcharge is an annual sum paid by the owner of freehold land to another person who has no
other legal interest in the land. The person who receives payment from the rentcharge is known
as the ‘rentowner’.
Rentcharges have existed for many centuries, but since the Rentcharges Act 1977 no new
rentcharges can be created.
Rentcharges provided a regular income for owners of land who were prepared to release land for
development. Sometimes the land was released without a capital sum being paid with the
rentcharge being the only payment.
A rentcharge is sometimes called a ‘ground rent’. However, a true ground rent is charged on
leasehold land. Rentcharges are also often known as ‘chief rents’ in the north west of England.
Who has to pay the rentcharge?
Once it’s imposed, a rentcharge continues to bind all the land even if it’s later divided and sold
off in plots.
The rentowner could make any one of the householders on the land pay all of the rentcharge and
collect the appropriate portions from the other householders on the land.
This has led to many unfair situations. In some cases, the householder wasn’t able to get money
from the others and was left out of pocket.
Sometimes, a rentowner would agree to collect the various portions separately from each
householder. This is known as an ‘apportionment’. It could be legal or informal. Most
apportionments were informal.
You can apply to buy out (‘redeem’) your rentcharge so that you no longer have to pay it (see
‘How to redeem your rentcharge’ below). If your house is one of a number of houses charged
under one rentcharge, you would first need to get your share apportioned legally (see ‘How to
legally apportion your rentcharge’ below).
How to redeem your rentcharge
Certain types of rentcharge are redeemable under the Rentcharges Act 1977. This means that you
pay a single lump sum and after that no longer have to pay the rentcharge.
Normally the rentcharges team uses the formula in section 10 of the Rentcharges Act 1977 to
work out the redemption figure to enable you as the rent payer to redeem your Rentcharge.
However, the formula cannot currently be used because part of it, the gilt (or 2.5% consolidated
stock which is represented by the letter ‘Y’ in the formula), has now itself been redeemed and is
no longer listed. This means we are no longer able to calculate a redemption figure for
applications that we receive.
On 21 October 2015 we published a technical discussion paper seeking comments on 3 issues:



a replacement rate or instrument for the 2½% Consolidated Stock, to be used in the
calculation formula for rentcharge redemptions
calculating minor superior leasehold interests for enfranchisement and minor
intermediate leasehold interests for lease renewals and enfranchisement
the future role of the Secretary of State in the process of redeeming rentcharges
The closing date for all responses is 4 November 2015.
As the process of updating the formula may take some time to complete you may wish to
approach the rent owner about redeeming your rentcharge directly. This would be a private
arrangement and we would not be involved in the process. The formula is not needed to calculate
the redemption figure where you choose to negotiate this with the rent owner.
If you decide to apply to redeem your rentcharge under the Rentcharges Act 1977:
1. Download the application form below, fill it in and sign it. Return the form to:
Rentcharges Unit, Department for Communities and Local Government, Ground Floor,
Rosebrae Court, Woodside Ferry Approach, Birkenhead, Merseyside, CH41 6DU.
2. When you send the form, include a copy of the deed that created the rentcharge and a
copy of the Land Registry register (if the property is registered). See an example of a
Land Registry register.
3. The rentcharges team will contact the person you name as the rentowner and ask them to
confirm ownership.
4. Once they have confirmed, the rentcharges team will tell you how much money you have
to pay the rentowner to redeem the rentcharge. If the rentowner doesn’t confirm
ownership, the rentcharges team will advise you what to do.
5. You send payment to the rentowner. Ask for the receipted form to be sent back to you.
6. Once you get the form back, send it to the rentcharges team.
7. They will then send you a certificate of redemption.
Application form to buy out (redeem) your rentcharge
MS Word Document, 99.5KB
This file may not be suitable for users of assistive technology.
Request a different format.
If you use assistive technology and need a version of this document in a more accessible format,
please email alternativeformats@communities.gsi.gov.uk. Please tell us what format you need. It
will help us if you say what assistive technology you use.
You can also redeem your rentcharge without applying to the DCLG rentcharges team, as long as
the rentowner agrees and you both agree on the payment.
How to legally apportion your rentcharge
You can apply for an ‘order of apportionment’ which legally separates your share of the
rentcharge.
To apply to apportion your rentcharge:
1. Download the application form below, fill it in and sign it. If there are joint owners, all of
you should sign. Return the form to: Rentcharges Unit, Department for Communities and
Local Government, Ground Floor, Rosebrae Court, Woodside Ferry Approach,
Birkenhead, Merseyside, CH41 6DU.
2. When you send the form to the DCLG rentcharges team, include a copy of the deed that
created the rentcharge and a copy of the Land Registry register (if the property is
registered). See an example of a Land Registry register.
3. The rentcharges team will contact the person you name as the rentowner and tell them
that you have applied.
4. The rentcharges team will then issue a draft order of apportionment. This will include the
amount of rentcharge you are paying.
5. If the rentowner objects, the rentcharges team will consider this and adjust the amount if
necessary. If they do this, they’ll send you a copy of the amended draft order.
6. If the rentcharge apportioned to your house is £5 or less per year, the rentowner can ask
that you instead have to buy out your share (‘redeem’) your rentcharge by paying them a
lump sum. The rentcharges team won’t allow this if it would cause you financial
hardship.
7. If the rentowner does not object or you don’t withdraw your application after the draft
order is amended, the rentcharges team will send you an order of apportionment. They
will also send a copy to the rentowner and all the other householders who pay the
rentcharge.
Application form to apportion your rentcharge
MS Word Document, 66KB
This file may not be suitable for users of assistive technology.
Request a different format.
If you use assistive technology and need a version of this document in a more accessible format,
please email alternativeformats@communities.gsi.gov.uk. Please tell us what format you need. It
will help us if you say what assistive technology you use.
Apportioning ground rents on leasehold houses
If you pay a ground rent on a leasehold house that is also payable on other neighbouring
properties, you can apply for an ‘order of apportionment’ that legally separates your share of the
ground rent.
The process for applying is the same as for apportioning a rentcharge (above), but you should
use this application form:
Application form to apportion your ground rent
MS Word Document, 133KB
This file may not be suitable for users of assistive technology.
Request a different format.
If you use assistive technology and need a version of this document in a more accessible format,
please email alternativeformats@communities.gsi.gov.uk. Please tell us what format you need. It
will help us if you say what assistive technology you use.
Individual ground rents on leasehold houses cannot be redeemed by payment of a lump sum in
the same way as rentcharges.
How much does it cost?
Most rentcharges have fewer than 60 years to run, and in such cases the cost of redemption is, at
present, about 16 times the annual amount of the rentcharge.
You don’t have to pay any fee to the DCLG rentcharges team for apportionment or redemption
of a rentcharge. However, you may have to pay other costs, like getting a copy of your house
deeds.
Contact
If you intend to visit the office for any reason please either telephone or email to make an
appointment beforehand to avoid disappointment.
Rentcharges Unit
Department for Communities and Local Government
Ground Floor, Rosebrae Court
Woodside Ferry Approach
Birkenhead
Merseyside
CH41 6DU
If you have any questions about the process to apportion or redeem your rentcharge, email the
DCLG rentcharges team at rentcharges@communities.gsi.gov.uk or call 0303 444 4558 or 0303
444 8095 or 0303 444 4560.
Back to contents
Published:
15 November 2012
Updated:
21 October 2015
+ full page history
21 October 2015 10:00am
Added text on technical discussion paper.
25 August 2015 3:11pm
Updated text on redeeming rentcharges. The Rentcharges Team are no longer able to
calculate a redemption figure for applications they receive.
15 November 2012 10:21am
First published.
From:
Department for Communities and Local Government
Help us improve GOV.UK
Don’t include personal or financial information, eg your National Insurance number or credit
card details.
What you were doing
Send
What went wrong
Services and information








Benefits
Births, deaths, marriages and care
Business and self-employed
Childcare and parenting
Citizenship and living in the UK
Crime, justice and the law
Disabled people
Driving and transport








Education and learning
Employing people
Environment and countryside
Housing and local services
Money and tax
Passports, travel and living abroad
Visas and immigration
Working, jobs and pensions
Departments and policy






How government works
Departments
Worldwide
Policies
Publications
Announcements
Support links






Help
Cookies
Contact
Terms and conditions
Rhestr o Wasanaethau Cymraeg
Built by the Government Digital Service
Open Government Licence
All content is available under the Open Government Licence v3.0, except where otherwise stated
© Crown copyright