What is ground rent?

Question

I'm thinking of buying a new house and it states "ground rent to be verified by buyer, seller will not redeem". Can someone please explain in plain english and not straight out of the book definition. Thanks

Answer 1

It means that the Seller is keeping ownership of the ground on which the new house is located. You do not own the land. You simply pay rent to the owner. In other words, you are buying a leasehold. Ask how many years before the house reverts to Seller?