Ground rent reduced to peppercorn with deed of variation: should title register be amended?

lb00

Hi everyone,

I am in the process of buying a leasehold flat and have encountered an issue with the title register.

Originally, the flat had ground rent payable. In 2013, the owner acquired the freehold, and a deed of variation was executed to reduce the ground rent to a peppercorn.

Currently, Entry 2 of the title register shows ground rent payable, while Entry 6 refers to the deed of variation and states that the terms of the registered lease were varied.

My solicitor insists that the seller's solicitors contact HMLR to amend the title register. However, the seller's solicitors argue that Entry 6 of the Property Register already indicates the lease variation and that the document has been provided to me.

I need to exchange contracts soon due to previous delays, and I'm concerned that the seller might withdraw if I push for more enquiries. Do you think my solicitor is right to insist on this amendment, or is he being overly cautious?

Thanks for your advice.

Marky4040

lb00 said:

Hi everyone,

I am in the process of buying a leasehold flat and have encountered an issue with the title register.

Originally, the flat had ground rent payable. In 2013, the owner acquired the freehold, and a deed of variation was executed to reduce the ground rent to a peppercorn.

Currently, Entry 2 of the title register shows ground rent payable, while Entry 6 refers to the deed of variation and states that the terms of the registered lease were varied.

My solicitor insists that the seller's solicitors contact HMLR to amend the title register. However, the seller's solicitors argue that Entry 6 of the Property Register already indicates the lease variation and that the document has been provided to me.

I need to exchange contracts soon due to previous delays, and I'm concerned that the seller might withdraw if I push for more enquiries. Do you think my solicitor is right to insist on this amendment, or is he being overly cautious?

Thanks for your advice.

The current freeholder only needs to put in writing what the current ground rent charge is and send that to your solicitor. 

The sellers solicitor is correct, the DoV is recorded at the HMLR but the detail of that DoV is not. The detail of the variation is recorded in the lease document which I'm assuming you've been given a copy of?

The lease will have a clause detailing which ground rent provision has been amended, and to what. Example, it was £100 per annum it's now one peppercorn. 

Failing that, tell your solicitor you'll take out an indemnity insurance against any future issues with the ground rent, about £50, panic over.

loubel

Seller's solicitor is correct, the Deed of Variation has been registered and is noted on the Title to record the change in ground rent.

propertyrental

lb00 said:

.......... In 2013, the owner acquired the freehold, and a deed of variation was executed to reduce the ground rent to a peppercorn.

........

are you buying the freehold as well?