Redeeming the Ground rent in Baltimore

[Paolo Nascimbeni]

Hi I recently acquired 3 properties with ground rent.  One does not seem to be registered in the SDAT database, the other two I would like to redeem

According to the law: 
The amount to redeem your ground rent is set by Maryland Law and based on the original ground rent lease. Some ground rents state the redemption price. If the original ground rent lease is silent as to the redemption price then the following applies:

July 2, 1982 – Present – 12%
April 6, 1888 – July 1, 1982 – 6%
April 8, 1884 – April 5, 1988 – 4%
Prior to April 9, 1884 – Negotiable and possibly non-redeemable.

To compute the redemption price, take the annual ground rent and divide by the capitalization rate. For example: if the ground rent is $100 and the lease started in 1935, the calculation is $100 divided by .06, and thus $1,666.67 to purchase the ground rent.

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I did the calculation and I pay $48 a year so it would be 48/0.12 that makes $400 and I have a paper here that says $400 to redeem

I called the owner of the ground rent but he asked me $1200 ( claiming that mine are not redeemable and cost more but I went on the Baltimore SDAT database and it says my ground rent are redeemable)  -   Any idea on how I should move from here?  Thanks  Paolo

[Michael Randle]

Call me crazy. But what is ground rent?