What is a “peppercorn” rent?
This means a
nominal or token rent - the minimum payment
necessary to
establish the legality of an agreement.
It usually arises
where the lease is a deed, which does not
need a significant
consideration other than a token acknowledgement
to recognise
the landlord and tenant relationship.
In practice a peppercorn
rent is never demanded although
occasionally a pedantic conveyancer may require the collective
arrears to be paid off
(or at least included) as
part of the financial statement on
completion of a sale.