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How Do I Redeem Maryland Ground Rent?

Row_House_Baltimore_Landlord_Tenant_LawyerGround rent is common in Maryland especially with property in Baltimore City. If ground rent is on your property then you are responsible for pay a small amount of money each year to the owner of the ground rent. The amounts vary but I find they are typically around $100 to $200 per year. Owners of ground rent in Baltimore are most often individuals, banks or companies.

Instead of paying the annual fee—typically paid in two installments per year—you can purchase the ground rent, merge it with your interest in the property and forever extinguish the ground rent on the property. Ground rents with 99 year leases that are renewable forever are redeemable. As the owner you have the right to purchase the ground. There are some ground rents prior to 1888 that do not qualify for this automatic redemption.

The amount to redeem your ground rent is set by Maryland Law and based on the original ground rent lease. Some ground rents state the redemption price. If the original ground rent lease is silent as to the redemption price then the following applies:

July 2, 1982 – Present – 12%
April 6, 1888 – July 1, 1982 – 6%
April 8, 1884 – April 5, 1988 – 4%
Prior to April 9, 1884 – Negotiable and possibly non-redeemable.

To compute the redemption price, take the annual ground rent and divide by the capitalization rate. For example: if the ground rent is $100 and the lease started in 1935, the calculation is $100 divided by .06, and thus $1,666.67 to purchase the ground rent.

For a free, confidential conversation to discuss this and other Maryland property law matters, including drafting, filing and recording Maryland property deeds and redeeming your ground rent for you, contact Maryland property attorney Stephen J. Reichert at 410-299-4959, or by clicking here.

Day, evening and weekend appointments are available in office or at your residence. Mr. Reichert personally serves clients throughout the entire state of Maryland.

Attorney Reichert looks forward to assisting you with your Maryland property law, property title and real estate deed issues.

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