I thought Right to Manage would stop our ground rent. Here is what actually happens

A neighbour said something during our Right to Manage process that stopped me in my tracks. "At least we will not have to pay ground rent any more once we take over," she said. I had assumed exactly the same thing, right up until I actually checked what ground rent means for leaseholders like us.

What Right to Manage Actually Changes

Right to Manage lets leaseholders take over the day-to-day running of the building. It helps to be clear about what the Right to Manage actually means before assuming it solves every problem with the freeholder. Repairs, service charge accounts, contractor decisions, and building compliance all move to the RTM company you and your neighbours control.

Ground rent is a payment written into your lease that goes to whoever holds the freehold, whether that is an individual, a company, or an investment fund. Right to Manage does not transfer the freehold and does not cancel any term in your lease. If your lease says you pay £250 a year in ground rent, that clause carries on exactly as before, RTM company or not.

Ground Rent and Service Charge Are Not the Same Thing

A lot of leaseholders lump ground rent and service charge together, and I did too until I looked closely at our own lease. Service charge pays for the actual running of the building, the cleaning, the insurance, the repairs. Ground rent is a separate, fixed payment that has nothing to do with how well or badly the building is managed.

That distinction matters more than it sounds. You can dispute a service charge you think is unfair or badly explained, and there are proper routes for doing that. Ground rent is different, because your lease usually states the exact amount and the exact date it is due, leaving very little room for the same kind of challenge.

Why You Should Keep Paying Ground Rent During a Dispute

If you are in the middle of a row over service charges, whether that is with a managing agent, a freeholder, or things settling in with your own RTM company, keep paying the ground rent separately. Falling behind on ground rent is treated far more seriously by the law than falling behind on a disputed service charge. In some circumstances a freeholder can take steps that put your lease itself at risk if ground rent goes unpaid for long enough.

I am not going to pretend I know how your specific lease or situation would play out, because that depends on the wording of your lease and your circumstances. What I will say is that treating ground rent as untouchable, and keeping a record of every payment, is the safer path while you sort out a separate dispute. If in doubt, a solicitor can tell you exactly where you stand.

The Ground Rent Cap That Is Coming

In January 2026 the government confirmed plans to cap ground rent at £250 a year for existing leases, dropping to a peppercorn, effectively nothing, after 40 years. This builds on the Leasehold and Freehold Reform Act 2024, which had already banned ground rent on new long leases. You can read the 2024 Act in full on legislation.gov.uk.

None of this is law yet for existing leases. The cap is part of a draft Bill still working through Parliament, and the government is not expecting it to take effect before 2028. Until then, whatever your lease says about ground rent is what you are legally required to pay.

What Actually Gets Rid of Ground Rent

If your real goal is to stop paying ground rent altogether rather than wait for a cap that is still years away, there are two routes that can genuinely do that. A lease extension, statutory or negotiated directly with the freeholder, can reset your ground rent to a peppercorn as part of the deal, though this is not automatic. Every case is different, so getting a peppercorn ground rent written into the new terms is something you or your solicitor should push for specifically rather than assume will happen by default. Buying the freehold outright, alone or together with your neighbours through collective enfranchisement, removes the ground rent question entirely because there is no longer a separate freeholder to pay it to.

Right to Manage is not a requirement for either of those routes. But plenty of leaseholders find that going through the RTM process first, including working out what it actually costs to take control of a building, gives them the organisation and the confidence as a group to consider a lease extension or enfranchisement next.

Why Self-Management Still Helps, Even With Ground Rent Staying the Same

Self-managing your building after Right to Manage will not make your ground rent disappear, and I would rather tell you that honestly than oversell it. What it does give you is complete clarity. With the right tools you can see exactly what is ground rent, what is service charge, and what is due when, instead of an agent's invoice lumping everything into one confusing figure.

That clarity is worth more than people expect. Once you can see the building's finances in one place rather than waiting on an agent to explain a bill, decisions about disputes, arrears, or even a future lease extension become much easier to make with confidence. If you want to find out where your own building stands, check if your building qualifies before anything else.

This article is for educational purposes only and does not constitute legal advice. Every situation is different. If you need guidance specific to your building or lease, please consult a qualified solicitor.