Peppercorn Rent

A nominal or inconsequential rent set out in a lease in order to show that a commercial transaction exists.

If you have a lease or even several properties, you are probably required to pay something to the landlord as part of a long lease or virtual freehold. This money is sometimes divided into three parts: (i) the ground rent, (ii) the insurance premium, and (iii) funds for maintenance. If you do not pay any of these fees on time, it may result in significant penalties including the loss of your leasehold interest


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