As a legal term,
ground rent specifically refers to regular payments made by a holder of a
leasehold property to the
freeholder or a superior Leaseholder, as required under a
lease. In this sense, a ground rent is created when a freehold piece of land is sold on a long lease or leases. The ground rent provides an income for the landowner. In economics, ground rent is a form of
economic rent meaning all value accruing to
titleholders as a result of the exclusive ownership of title
privilege to
location.