Changed dates for when Ground Rent is payable

ArGee68

I hope this is the right forum to post my query.  I own a leasehold house and under the terms of the lease £75 ground rent is due each year in advance on 1 November for the period 1 November to 31 October.  I have lived here for 10 years and all ran smoothly until the freeholder employed a new company to collect the ground rents.  They have just sent this years ground rent notice and they have changed the annual period for payment to 1 August - 31 July.

They are refusing to change the dates back in line with the lease, stating that the freeholder only wants to collect rents between the same dates for all leases, irrespective of what our actual leases say.    There has been no variation to the lease, nor have they reduced the charge this year to account for the 3 months August to October that has already been paid from the previous years ground rent that is paid up to 31 October. 

The potential overcharge is not a big deal (though still unfair IMHO), however I am planning to sell my property within the next 6 months and I'm concerned that the change in dates from what the lease states may cause issues.

My queries are:  1) Can a freeholder request & insist on payment of ground rent for a period that is not in accordance with the lease terms  2) will this potentially cause issues when I come to sell the property and 3) can I withhold payment until they issue a notice for the correct period or at least reduce the amount due to 9 months.

Any advice will be gratefully received.

JReacher1

If you're planning on selling then you are best off paying the £75 so you are up to date and not making a big thing of this.  When your buyers solicitor runs their checks you want to demonstrate that you are fully up to date and don't owe anything to the leaseholder.

subjecttocontract

I suggest you contact:
* The Leasehold Advisory Service or
* A local solicitor via citizens advice.

ArGee68

Thanks for your replies.  I am currently up to date as I have paid the £75 ground rent to 31 October 2023.  But they are now asking for a further £75 from August so double charging me for 3 months. 

I found the Leasehold Advisory Service this afternoon and after some research I've discovered the Notices to pay they have sent don't comply with the regulations as they are missing required information that must be included.  Therefore technically I am not liable for the ground rent until they send an amended Notice in the correct format.

I also think they can't ask for payment prior to the due date as stated in the lease which is 1 November, irrespective of what period they want to collect ground rent for, in which case I don't have to pay anything until November.   

As hopefully I will be in the process of selling by then (fingers crossed) my solicitor will be able to advise what I should pay.

subjecttocontract

I've sold quite a few leasehold properties over the last few years in order to reduce the size of our property portfolio. I always pay ground rent when invoiced and in advance. When we sell I usually let my solicitor have the receipt & invoice showing payment. He then ensures the buyer reimburses me for my advance ground rent payment as part of the completion statement.

NameUnavailable

They can certainly ASK you to pay earlier, but the lease is what's legally binding here.

But, as you want to sell, it's best as said to pay and avoid any potential issues which might also put buyers off.