What process extinguishes ground rent and merges the two estates into one?

The process that extinguishes ground rent and merges the two estates into one is Ground Rent Redemption. This process involves the payment of a specific amount to the owner of the ground rent to eliminate the obligation to pay that rent. When a property owner redeems the ground rent, they effectively purchase the landlord's interest in the ground rent, thereby merging the leasehold estate (the ground rent) with the fee simple estate. This consolidation of interests eliminates any further ground rent payments and gives the property owner full ownership without the encumbrance of the ground rent.

In real estate practice, Ground Rent Redemption is a significant step because it simplifies property ownership, enhances marketability, and removes uncertainties associated with ongoing rent payments. It's a strategic process often pursued by property owners holding ground leases, especially when they aim to increase their property rights and simplify their financial obligations.