This is usually a long lease, granted at a ground rent but subject to an initial premium payment. A ground lease can vary in length from 30 years up to 999 years. The principle of a ground lease is that the rent paid relates to the value of the land only. The terms of the tenant’s lease usually provide an obligation to develop the land. The building is then owned by the tenant, usually free of any rent. Ground Rent levels vary from a peppercorn, i.e. nil rent, to a percentage of the open market rack rental value of the building.