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.