Alexander Wood Renton

“ A devise of “ground rent” carries not only the rent but the reversion. Where a tenant is compelled, in order to protect himself in the enjoyment of the land in respect of which his rent is payable, to pay ground rent to a superior landlord (who is of course in a position to distrain on him for it) , he is considered as having been authorized by his immediate landlord to apply his rent, due or accruing due, in this manner, and the payment of the ground rent will be held to be payment of the rent itself or part of it. ”

“ In the 17th century these Lords of Erection resigned their superiorities to the crown, with the exception of the feu-duties, which were to be retained till a price agreed upon for their redemption had been paid. This reserved power of redemption was, however, resigned by the crown on the eve of the Union and the feu-duties became payable in perpetuity to the Lords of Erection as a “ground-annual.” (ii.) Speculators in building ground usually grant sub-feus to builders at a high feu-duty. ”

“ But while a rack rent is generally higher in amount than a ground rent, the latter is usually better secured, as it carries with it the reversionary interest in buildings and improvements put on the ground after the date at which the ground rent was fixed, and accordingly ground rents have been regarded as a good investment. Trustees empowered to invest money on the security of freehold or copyhold hereditaments, may invest upon freehold ground rents reserved out of house property. ”