Because leasehold is a tenancy, it is subject to the payment of a rent (which may be nominal) to the landlord. Ground rent is a specific requirement of the lease and must be paid on the due date, subject to the issue of a formal and specific demand by the landlord.
Is the rent paid by owners of the land on which a building sits. In most residential property there is a single owner of a property the freeholder.
However, where property has been developed for apartments, for instance, it is often split into freehold and leasehold titles.
The leaseholder will generally own the bricks and mortar whilst the freeholder retains the ownership of the land.
In return for the use of the land on which the building is located the leaseholder is required to pay the freeholder a small annual rent known as ground rent.