Backdated ground rent?

yeezy_2

Hi, my freeholder has sent me a demand for ground rent backdating 50 years. I moved into this properly less than a year ago and have since paid all charges, but this has come as a complete surprise. The total is over £6,000. Is this legal? Is this something my solicitor should have mentioned? It says it is related to the Commonhold and Leasehold Reform Act 2002, Section 166. 
Would appreciate any advice before I contact them myself.
Thanks

yeezy_2

Just to add there are over 900 years left on the lease.

eddddy

6 years is the maximum...

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.

https://www.lease-advice.org/faq/my-landlord-has-not-demanded-ground-rent-for-several-years-can-he-still-demand-it/

eddddy

yeezy_2 said:

Is this something my solicitor should have mentioned? 

Your solicitor would normally have checked the status of ground rent payments - to see if any were overdue etc.

What did your solicitor say about the ground rent status?

yeezy_2 said:

I moved into this properly less than a year ago ...

If ground rent bills weren't sent to the previous owner, you probably now owe up to 6 years of ground rent.

If ground rent bills were sent to the previous owner, they owe whatever bills they received.

(But it might be better to pay the bills anyway, to avoid the risk of your lease being forfeited.)

yeezy_2

I checked the contracts and it says payment has been made until 24th March 2021. 
To note, they did increase the ground rent this year which I was aware was going to happen, but it looks like they want to backdate this for the past 50 years. 

yeezy_2

actually looking at the charges, they are demanding the full ground rent (including the new increase) for 50 years. As if it has never been paid before.

eddddy

yeezy_2 said:

I checked the contracts and it says payment has been made until 24th March 2021. 

So does the lease say that ground rent is due on 25th March every year?

If so, according to your solicitor, it seems that you are liable for ground rent from 25th March 2021 onwards.

yeezy_2 said:

To note, they did increase the ground rent this year which I was aware was going to happen, but it looks like they want to backdate this for the past 50 years. 

• Firstly, as I said, the limitation period is 6 years

• Secondly, they can only charge the ground rent specified in the lease

• Thirdly, I think you're saying ground rent was paid until 24th March 2021 anyway

BUT... in general, it can be very risky not to pay ground rent.  So you probably need to speak to the freeholder fairly urgently about this.


Normally, the advice is to pay a ground rent bill immediately, and challenge it later. But I don't think that applies to ground rent going back more than 6 years. So if you don't get anywhere with the freeholder, and there's a possibility that ground rent really hasn't been paid, maybe pay 6 years worth at most - but pay under protest, and make it clear which 6 years you are paying for.


And maybe book a free call with LEASE to get advice: https://clients.lease-advice.org/#/

yeezy_2

Thank you for your help!

yeezy_2

Okay I called them and it was a system error! Thank god for that 😅

dimbo61

So have you paid this year's ground rent ?

eddddy

yeezy_2 said:

Okay I called them and it was a system error! Thank god for that 😅

That's good news.

But because you've received a ground rent bill, and non-payment of ground rent is a potentially very serious issue - in your position I'd send them an email (or even a letter) saying something like:

Further to my telephone conversion with nnnnn today, thankyou for confirming that the ground rent bill number xxxxxxx dated dd/mm/yyyy was sent in error and does not require payment, and also for confirming that no ground rent payment is due from me at this time.

...or whatever was agreed in the call.