Leasehold with share of freehold

joeistheone

There is a flat contained in a block of flats. The freehold of the block of flats was purchased by the individual leaseholders a few years ago who set up a management company for this purpose. The individual leases of all the flats prescribe an amount of ground rent payable annually.

My question is this: is it possible/normal for the collection of the ground rent stipulated in the leases to be subsequently waived by the freehold management company (the shareholders of which are the individual leaseholders)?

I ask because it sounds like a reasonable thing to do, since the leaseholders paying the ground rent almost be the same as paying rent to themselves (albeit in the form of a separate legal person, the freehold management company).

borborygmous

I don't know the answer. Two thoughts:

1. You might want to try asking the Leasehold Advisory Service (free, more or less impartial)

2. Presumably the ground rent goes into the same pot as contributions to maintenance? If so, might it not be easier to just set maintenance contributions at a level that takes account of the ground rent? No lawyers required.

If the problem is you want to pay less towards maintenance because you're expecting to sell, while I don't claim any moral superiority, I guess your fellow leaseholders may not be so happy about the idea...

Richard_Webster

It is very common (if not the norm) for the ground rent to be waived by a freeholder company owned by the individual leaseholders.

A few companies collect it and then add it to the "pot" of money used for maintenance etc. I think this just confuses things.