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Washington, DC suburbs in Maryland Calvert County, Charles County, Montgomery County, and Prince George's County
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Old 07-04-2009, 05:54 AM
 
1,054 posts, read 5,087,322 times
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Ground rents make the Queen of England rich. Well, sort of.

In the UK it is extremely common to have the land 'lease hold' meaning that someone owns the lands and leases the rights to build houses atop of it. Leases run 10-90-100-300 years in some cases. This practice is very common in London, Hawaii, and in some parts of Baltimore. The Queen owns a great deal of land and collects rents on them every year.

Contrast this to most of the US which is a 'free hold' system, where you own the land and the structures built upon it.

If you are considering buying a property with a ground rent, make sure there are no rules or restrictions. There is a famous case in the UK involving the Lanesborough Hotel which used to be St. Georges Hospital Hyde Park. There was a stipulation that the land was given free for use so long as it was for a charitable purpose (i.e. the hospital) but when the hotel was going in the original owner demanded the right to reclaim the building (after the renovations were done) for like £30 or something. Some lawyers had a field day with that one...
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