Peppercorn rent and the silent leaseholder

nicegirl

We've lived in our house for five years, paying a peppercorn rent every January. For the first three years an estate agent, acting on behalf of the leaseholder, sent us an invoice in December and we paid it in early January. In the fourth year, we didn't receive an invoice. I made several calls to the estate agent and was always told 'we will look into it and call you back'. No one did. Eventually I spoke to someone there who told me that the person who looks after the leasehold accounts had left suddenly and left them pretty much in the lurch. We agreed that on this occasion I would just make the payment to the bank account using a previous invoice and they would send me a receipt. They didn't - however I wasn't worried as I have the proof of payment from my bank account.
This year again we received no invoice. This time I just sent the payment to the bank account, however it was returned by their bank. I have called several times, and each time I'm told someone will look into it and call me back. No one does. They have confirmed that they have indeed changed bank accounts. All I have asked for is confirmation of the new bank account - either in writing or email. It's a small, local estate agent who have terrible reviews on Google regarding their customer service. (Not local enough for me to be able to see them in person, before it's suggested.)
I'm not really sure what to do next. We have put the money to one side, but would obviously rather pay it! Can anyone advise what we should do next please?

xylophone

Write to the agent requesting details of the account to which you should send the payment and send your letter "signed for".
Incidentally, have you checked the proprietorship register at the Land Registry?

nicegirl

Thank you. That's what I was thinking re: letter. Then if they don't get in touch, do we just keep saving the money each year and say well we tried etc?
No I haven't done that with the Land Registry. Why would you recommend that? I don't particularly want to start chasing them directly unless I'm going to get into a lot of trouble for not doing.

AdrianC

I presume it isn't literally a peppercorn rent - because you wouldn't need to do a lot of saving for a maximum of six peppercorns.

eddddy

You don't need to chase this.

If the ground rent isn't correctly demanded, you don't have to pay it. (i.e. If freeholder / lessor / landlord doesn't send you a 'bill' in the correct format, you don't have to pay the ground rent.)

But the freeholder / lessor / landlord  has up to 6 years to send you the 'bill'.

Here's an extract from the relevant legislation - Commonhold and Leasehold Reform Act 2002 - Section 166 :

166 Requirement to notify long leaseholders that rent is due

(1) A tenant under a long lease of a dwelling is not liable to make a payment of rent under the lease unless the landlord has given him a notice relating to the payment; and the date on which he is liable to make the payment is that specified in the notice.

(2) The notice must specify—
       (a)the amount of the payment,
       (b)the date on which the tenant is liable to make it, and
       (c)if different from that date, the date on which he would have been liable to make it in accordance with the lease,
and shall contain any such further information as may be prescribed.

(3) The date on which the tenant is liable to make the payment must not be—
      (a)either less than 30 days or more than 60 days after the day on which the notice is given, or
      (b)before that on which he would have been liable to make it in accordance with the lease.

link: http://www.legislation.gov.uk/ukpga/2002/15/section/166

nicegirl

Great, thank you all!
Adrian, that is the real term! 

Davesnave

We never paid our £5 p.a. ground rent in the 10 years we owned our leasehold house. It's a little late for anyone to come after us now, as we moved in 1987!

nicegirl

Davesnave said:

We never paid our £5 p.a. ground rent in the 10 years we owned our leasehold house. It's a little late for anyone to come after us now, as we moved in 1987!

What happens when you move though, don't you have to have proof it's paid? (I know that's the case with service charges etc.)

jimbog

How much is the 'peppercorn' rent that you pay? 

greatcrested

You speak of a peppercorn rent - so do you own a lease (with ground rent due) or own the freehold (with a peppercorn rent due)?

Who is the recipient of the pr? I don't mean the agent who is paid to collect it, I mean who do they give it to? Has that person changed? Have you checked?

For some strange reason you seem to be paying money which is not requested, to an agent who may or may not be employed by a freeholder or other person, who may or may not be due this money. Why?

Check your own Title documents here for £3.

Then check who you should be paying, either by paying another £3 for the freehold (if your Title is leasehold), or by paying £7 for your deeds (form OC1) which probably specify the peppercorn rent.

What happens when you move though, don't you have to have proof it's paid? (I know that's the case with service charges etc.)

Yes - but how much is the peppercorn rent? 6 years debt = 6 peppercorns. You can buy around 300 peppercorns from Sainsburys for £1.00, so any buyer of your property who makes an issue of this is going to be a real hassle to deal with - find a more sensible buyer!

xylophone

No I haven't done that with the Land Registry. 

Who is the freeholder? The Register should show.