Escalating ground rent clauses — especially those that double every 10, 15, or 25 years — are unfortunately quite common in long leasehold flats with many having been granted in the boom years of the early to mid 2000’s. While they may have seemed innocuous when first agreed, these clauses can now create real financial burdens, reduce your property’s value, and deter potential buyers or mortgage lenders.
If your lease contains one of these problematic clauses, the good news is that there are practical ways to reduce or remove this liability. In this guide, we explain how doubling ground rents work, the impact they have, and how a lease extension can eliminate the issue for good.
What Is a Doubling Ground Rent Clause?
A doubling ground rent clause is a contractual term in your lease which causes your annual ground rent to double at fixed intervals — typically every 10, 15, or 25 years.
Example:
- Initial ground rent: £250
- Doubles every 10 years:
- Year 1: £250
- Year 11: £500
- Year 21: £1,000
- Year 31: £2,000
These clauses may appear modest initially, but their compounding effect over time can result in:
- Exponentially rising costs
- Affordability problems for leaseholders
- Red flags for buyers and mortgage lenders
Why Are Doubling Rents a Problem?
While permitted under historic leases, doubling rent clauses can quickly make a flat:
- Unaffordable to live in
- Unattractive to buyers and investors
- Unacceptable to mortgage lenders (many have strict caps on ground rent levels)
Some lenders will refuse to lend on leases with ground rent that:
- Exceeds £250 outside London or £1,000 inside London
- Doubles too frequently
- Escalates faster than inflation
How to Remove or Reduce Doubling Ground Rent
The most reliable way to eliminate a doubling ground rent clause is through a statutory lease extension.
Statutory Lease Extension Benefits:
- Extends your lease by 90 years
- Reduces ground rent to a peppercorn (i.e., zero)
- Removes any doubling, escalating, or RPI-linked rent clauses
- Boosts your flat’s value and mortgageability
This is enshrined in law under the Leasehold Reform, Housing and Urban Development Act 1993.
Can I Negotiate a Change Without a Lease Extension?
Technically yes — via a deed of variation. This is a legal agreement between you and your freeholder to vary the ground rent terms in your lease.
However:
- The freeholder is not obligated to agree
- They may demand a premium in exchange
- Some refuse altogether or impose unreasonable conditions
In contrast, a statutory lease extension forces the ground rent reduction as a legal right.
Informal Lease Extensions: A Warning
Freeholders may offer to extend your lease informally, with a seemingly attractive premium.
But beware:
- They may keep or tweak the doubling clause instead of removing it
- Ground rent may switch from doubling to RPI-linked (still problematic)
- Terms may be unsuitable for buyers or lenders
Only a statutory lease extension guarantees full ground rent removal.
How a Doubling Clause Affects Lease Extension Premiums
If your ground rent is scheduled to increase substantially in future, your lease extension premium may be higher — because the rent component is more valuable to the freeholder.
Still, it’s often cheaper to extend early than to wait until future rent increases take effect.
Example: Leaseholder with a Doubling Clause
Maria owns a flat in Bristol:
- Lease term: 82 years remaining
- Ground rent: £250 doubling every 15 years
Her lender flags the clause during remortgage. She extends via the statutory route:
- New lease term: 172 years
- Ground rent: reduced to peppercorn (zero)
- Mortgage approved
FAQs
Is a deed of variation enough to solve the problem?
Sometimes — but not guaranteed. It depends on your freeholder and may still leave other problematic terms intact. A statutory lease extension offers more certainty.
Do all lenders reject doubling clauses?
Many do — especially if the doubling interval is 20 years or less. Others may still lend but reduce the loan amount or require legal indemnities.
Will the premium be higher because of the doubling clause?
Possibly — because the ground rent is more valuable to the freeholder. But the long-term savings far outweigh the premium increase.
Summary: What You Should Do
| Concern | Solution |
| Doubling ground rent | ✅ Extend lease statutorily |
| Lender refusal | ✅ Remove clause via lease extension |
| Selling soon | ✅ Start extension or assign Section 42 notice to buyer |
| Lease still long | ✅ Act now — avoid future increases |
Let’s Eliminate Doubling Ground Rent Together
At Extension.Lease, we help leaseholders take control of their leases, eliminate problematic clauses, and enhance property value through lease extensions.
We’ll provide:
- Expert ground rent analysis
- Accurate premium valuation
- Full support throughout your statutory extension
