Chief rent is this a scam

Knightwaker

I have lived in my house for 15 years and at the time of buying it the solicitor said that he did not know who the chief rent of £15 per year was payable to. I have just received an invoice from a company called UK Property Trust Linited for 8 years outstanding chief rent. They say that the lessor is Justified Properties Limited. I have also received a letter from a solicitor in Blackpool with a copy of the invoice saying that I can redeem the chief rent for £330 but that any cheques should be made payable to Justified Properties Limited (I would have thought that I should have made the cheque payable to the solicitor). How can I find out whether this company owns the cheif rent or whether it is just a scam.

terryw

Obviously check it out but it looks to be genuine. Is this Scotland? The English term is usually ground rent. You might find out by obtaining a copy of the land register from the Land registry for a few quid who owns the rights to collect.

Some years ago, I had a house built originally by Leach the builders and they used to charge a small rent like that. Like you I was offered the opportunity to buy this out for a small sum which i did. I did not use solicitors and merely paid the cash and handed over the paperwork to the new buyers when it was eventually sold.

These small sums of money can often cost more to collect so they are sold on or offered to the current owners.

JQ.

terryw wrote: »

Obviously check it out but it looks to be genuine. Is this Scotland? The English term is usually ground rent. You might find out by obtaining a copy of the land register from the Land registry for a few quid who owns the rights to collect.

Some years ago, I had a house built originally by Leach the builders and they used to charge a small rent like that. Like you I was offered the opportunity to buy this out for a small sum which i did. I did not use solicitors and merely paid the cash and handed over the paperwork to the new buyers when it was eventually sold.

These small sums of money can often cost more to collect so they are sold on or offered to the current owners.

Not quite right I'm afraid - ground rents apply to long leasehold properties, chief rents are payable on freehold property, they are not the same thing. Chief rents are quite simple to buy, as you've described above, buying the freehold (where ground rents are collected) is a bit more tricky.

But yes get a copy of the Land Registry document online to find out more info.

julies43

Knightwaker wrote: »

I have lived in my house for 15 years and at the time of buying it the solicitor said that he did not know who the chief rent of £15 per year was payable to. I have just received an invoice from a company called UK Property Trust Linited for 8 years outstanding chief rent. They say that the lessor is Justified Properties Limited. I have also received a letter from a solicitor in Blackpool with a copy of the invoice saying that I can redeem the chief rent for £330 but that any cheques should be made payable to Justified Properties Limited (I would have thought that I should have made the cheque payable to the solicitor). How can I find out whether this company owns the cheif rent or whether it is just a scam.

We have had the same situation, same company, same solicitor and being asked for over £300. We have been receiving invoices for years but haven't paid because the company doesn't look genuine, UK Property Trust, doesn't use proper headed paper and isn't listed at the same address as on the letterhead. When I asked them about 5 years ago to supply proof of who they were and who they were collecting on behalf of I heard nothing for a couple of years and then received the invoices again. I really am not convinced about this, but cannot enlighten you. I am going to Citizens Advice so will post what they say. Meanwhile if you find out anything let me know.

martindow

Knightwaker wrote: »

for 8 years outstanding chief rent.

Can they go back this far? Debts are usually limited to the previous six years.

TrickyDicky101

The amounts are so low that it is unlikely anyone will take action for non-payment. If you are in any way unsure to whom this should be paid I wouldn't pay it.

terryw

These charge (certainly ground rent) are likely to be a charge on the property and when the property is sold, it is usually necessary to show that the payments are up to date.

peter_m14

If you are contacted out of the blue requesting the payment of a chief rent or rentcharge on a freehold property then check the deeds to your property or contact the Land Registry if your property is registered with them to find out. If there is any reference to either a rentcharge or chief rent then you are legally required to pay it.

However you can apply to the National Rentcharges Unit, which is part of the Department for Communities & Local Government, at [EMAIL="rentcharges@communities.gsi.gov.uk"]rentcharges@communities.gsi.gov.uk[/EMAIL] to pay a one off free to redeem it.

boltonbird_3

Peter_M14, in order to comply with the rules of this forum surely you should register officially and post as the National Rentcharges Unit?

agrinnall

boltonbird wrote: »

Peter_M14, in order to comply with the rules of this forum surely you should register officially and post as the National Rentcharges Unit?

Peter, Boltonbird may be right, if you are a representative of the National Rentcharges Unit then you need to get official approval to post on their behalf (which is what you seem to be doing), see this rule for more information.

National_Rentcharges_Unit

Thanks for bringing this to my matter.