'Chief Rent'

[MORELLO]

Does anybody know exactly what 'Chief Rent' is and why some of us pay it? I own my own house through a mortgage, and yet have to pay this company/individual the sum of five pounds each year. Though not a large sum, if collecting of a number of properties it soon mounts up. I vaguely remember signing some sort of agreement when agreeing my mortgage some years ago, and I think it relates to an old law whereby this individuals descendants own the land my road is built on?

[zmudge]

Chief Rent is a payment made on freehold land to the original freeholder for an infinite period - forever. This is distinct from Ground Rent, which has a finite period.

With compliments zmudge

[MORELLO]

So is this common?

[zmudge]

No, it is not common but it is not entirely rare either. The history is a lengthy rigmarole so please excuse me from going into it here. It is not possible to shake the obligation off or to buy it out. Should you not make payment as due then whoever now owns the Chief Rent  will simply register a charge at the Land Registry blocking the sale of your property until everything owed is paid up plus interest plus costs (can be  annoyingly expensive).

[MORELLO]

Thanks zmudge.