How far back can ground rent be claimed?

How far back can ground rent be claimed?

Dates are Essential. First of all, you can only backdate demands for unpaid ground rent for up to six years.

Do you legally have to pay ground rent?

Ground Rent can be fixed or escalating. You do not have to pay the ground rent unless the freeholder has formally asked you to pay it. The demand will normally be posted or delivered to you at the address of the house or flat, unless you have already asked the freeholder to send ground rent demands to another address.

What is classed as onerous ground rent?

Onerous ground rents are those that double every 5-10-15 years or are linked in some way to the value of the flat. Or worst still existing owners of leasehold properties who will not be able to remortgage or raise finances on current leases with the potential of escalating ground rents.

Does ground rent have to be demanded?

The law requires the landlord to send you a demand in a prescribed form before you are liable to pay ground rent. You are not liable to pay ground rent unless the landlord has sent the demand in the correct form.

What happens if you refuse to pay ground rent?

If you don’t pay your ground rent, the freeholder can apply to the court for repossession of the property. This type of action is known as ‘forfeiture’. The freeholder can only start taking court action if: You’re three or more years in arrears with your ground rent.

Is ground rent being abolished?

07/07/2021 Legislation to effectively abolish ground rents by reducing them to a peppercorn, is contained in the Leasehold Reform (Ground Rent) Bill which is currently making its way through Parliament.

How does ground rent work?

The ground rent is the monthly fee that a homeowner pays to the holder of the leasehold property. So if the property you are living in has a leasehold, you can expect to pay a ground rent every month for essentially living on that land.

What is ground rent on a leasehold property?

As a legal term, ground rent specifically refers to regular payments made by a holder of a leasehold property to the freeholder or a superior leaseholder, as required under a lease. In this sense, a ground rent is created when a freehold piece of land is sold on a long lease or leases.

Can you pay off ground rent?

If your home has a ground rent, you must pay a fee — usually a relatively small one, twice a year — to the owner of that investment. Or you can buy it outright, known as “redeeming” it. Homeowners dealing with ground rent do actually own their land as long as they continue to pay.

What’s the difference between ground rent and service charge?

Ground rent is a rent payable to the landlord. It is a specific requirement of your lease agreement and must be paid on the due date. This increases in accordance with the terms of your lease. Service charges are payable by the leaseholder on a yearly basis for services rendered.

What happens when a ground rent lease expires?

The freeholder owns the land the property is built on, which means you, as a leaseholder, have to pay ‘ground rent’. Once the lease expires, the property reverts ‘back’ to being a freehold property, where both the building and the land it is on are under the ownership of the freeholder.

How long can you be in arrears with ground rent?

It is possible to recover up to six years of outstanding ground rent arrears, but, as the Limitation Act 1980 includes ground rent as a contract debt, no more than six years. If there are actually more than six years of arrears outstanding it is only the latest six years which will be recoverable by the landlord or freeholder.

How long does a freeholder have to pay ground rent?

A LEASE adviser explained how Mr H could contact the Land Registry to make sure that this person was indeed the new freeholder. She also outlined the proper format for ground rent demands, and explained: “Under the Limitation Act 1980 the limitation period for recovery of ground rent is 6 years.

How far back can a landlord go to recover ground rent?

She also outlined the proper format for ground rent demands, and explained: “Under the Limitation Act 1980 the limitation period for recovery of ground rent is 6 years. This means that your landlord can only seek to recover ground rent going back 6 years.”

What happens if a tenant does not pay ground rent?

Non-payment of ground rent – the legal consequences for tenants. If you are a tenant and court action is brought against you, you should attempt to pay off the arrears before the court date. If you fail to do so, you are likely to have to pay the freeholder’s legal fees on top of your own and the arrears.