Ground Rent in Baltimore
Ground Rent in Baltimore: what it is, why it exists, and how it impacts financing
If you've ever looked at an older Baltimore rowhome and seen "ground rent" on the listing, you're not going crazy, this is one of the most uniquely Maryland (and especially Baltimore City) real estate quirks. It's not out the ordinary, the key is understanding what you're buying, what Maryland law says, and how lenders and investors view the risk.
A brief history (why Baltimore has so much ground rent)
But first, a piece of history! Ground rent is a very old system, so old in fact it dates back to the Mayflower. Well, about 12 years after the Mayflower. In 1632, King Charles I appointed Cecilius Calvert (Lord Baltimore) to rule over the colony known as Maryland on his behalf. Instead of giving the land to settlers the Calvert family leased the land to them, a common practice in feudal England.
Through the 18th and 19th century the practice grew as real estate developers used the practice to lower the entry price to homeownership. Most famously they were structured as 99-year leases that automatically renew forever, where the homeowner owns the structure but leases the land underneath it. The system became heavily concentrated in Baltimore City and remains most common in older neighborhoods with long-established housing.
Who owns ground rents today?
In 2026, ground rent owners are often individuals/families who inherited ground rent portfolios in an estate or trust, or they're investors who purchase the ownership of the rents to lease back to homeowners for small amounts of predictable income.
The State Maryland operates an online "Ground Rent Registry" through the State Department of Assessments and Taxation (SDAT), which is where you can verify registration and see information tied to a property's ground rent.
A major shift in recent years: SDAT notes that irredeemable ground rents that were not registered are now redeemable after April 1, 2023, which matters if you're trying to clear title or "buy out" the ground rent.
Maryland law: buying a property with ground rent
Here are the practical legal points that show up in real transactions:
1) Registration matters
Maryland requires ground rent lease holders to register their ground rents on SDAT's online registry. If the ground rent is not registered, the holder may not collect (or attempt to collect) rent and related charges.
2) Redemption is allowed (you can "buy it out").
Maryland law provides that most residential ground rents (with exceptions such as certain apartment/co-op situations) are redeemable at the option of the leasehold tenant, typically after giving required notice; meaning the homeowner can "buy out" the ground rent and convert the property to fee simple by paying the statutory redemption amount.
3) If the ground rent owner is "lost," there are processes.
If you can't identify or locate the ground rent owner, Maryland provides pathways to redeem through the state process (this comes up more often than you'd think in Baltimore).
Lender overlays and investor discretion (what actually happens at underwriting)
Even when the law allows something, financing decisions come down to investor guidelines + lender overlays. Agency lending (Fannie/Freddie) generally allows leasehold/ground-lease scenarios in markets where it's common, like Baltimore.
Fannie Mae's guidance on leasehold estates makes it clear these can be eligible where they have market acceptance. Freddie Mac similarly addresses requirements for mortgages secured by leasehold interests.
That said, many lenders layer on extra requirements, such as:
- Confirming the ground rent is properly registered on SDAT
- Requiring the lease terms to be long-term and stable (the classic 99-year
renewable structure typically fits) - Requiring proof the ground rent is current (no unpaid amounts or disputes)
- Sometimes requiring escrowing the ground rent or requiring redemption
prior to closing, depending on investor appetite and perceived title risk
Overlays like these become more common as you use more non-traditional products and risk tolerances are up to investors instead of agencies.
Bottom line for buyers
Ground rent is usually a solvable issue and certainly not a reason to walk away from a property you love. If using an experienced agent, lender, and title company, navigating these old forms of leasehold is typically easy. But if you are having an issue, feel free to reach out!