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Ground Rent

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Joanne2121
Joanne2121 Posts: 3 Newbie
in House buying, renting & selling
Morning,

Purchased a leasehold house on 01/05/2014 - never heard anything from the leaseholder and tried tracing them. Today I got a letter through my door that had been opened so presumed it was hand delivered from previous owner. It was from a solicitor claiming back ground rent 2014 2015 2016 2017 2018, addressed to previous owner. I did ask my solicitor at time of purchase about it - response was don't worry about it.
1. Do I pay the back charges.
2.The company the solicitor is claiming on behalf of is not what is on my deeds?
3. Am I best trying to purchase the leasehold?

Any advice appreciated.

Thanks

Joanne

Comments

  • Rambosmum
    Rambosmum Posts: 2,445 Forumite
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    Why wouldn't you have to pay it? I presume you have been saving it, for when they do claim it?


    The usual is 6 years for collecting back pay/ back rent/ uncollected bills.
  • anselld
    anselld Posts: 8,282 Forumite
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    For the avoidance of confusion, you mean Freholder / Freehold not Leaseholder / Leasehold.

    Yes, pay the back rent assuming you can confirm that the demand is from the legitimate Freeholder. That can be checked by downloading the freehold title from Land Registry for £3.

    You may or may not be entitled to purchase the freehold and that may or may not be a good idea depending on the price. Either way it will make no difference to the requirement to pay the back charges.
  • Joanne2121
    Joanne2121 Posts: 3 Newbie
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    Thanks for the advice.. Yes I have saved the ground rent money and have every intention of paying! The name on the freehold title does not match the name on the letter I have received.
  • anselld
    anselld Posts: 8,282 Forumite
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    Joanne2121 wrote: »
    Thanks for the advice.. Yes I have saved the ground rent money and have every intention of paying! The name on the freehold title does not match the name on the letter I have received.

    Have you downloaded the up-to-date title though, not the one you got with your deeds in 2014?

    Write to the person making the demand, tell them you are now the Leaseholder and ask for proof that they represent the registered Freeholder.
  • eddddy
    eddddy Posts: 16,445 Forumite
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    Joanne2121 wrote: »
    1. Do I pay the back charges.

    As long as you're satisfied that the person demanding payment is the freeholder, you should pay.

    If you don't, the freeholder may be able to add late fees, solicitor's fees etc to the bill (depending on what your lease says).

    If you want to be pedantic, you can check....
    Since the 28th February 2005 any demand for ground rent by a freeholder, or their managing agents, must be made in a !!!8220;prescribed form!!!8221; as set out in Section 166 of the Commonhold & Leasehold Reform Act 2002.

    If the ground rent is not demanded in this prescribed form, and completed in accordance with section 166, the tenant (leaseholder) is not liable to make payment unless, and until, it is properly demanded.

    Link: https://www.lease-advice.org/article/ground-rent-a-demanding-notice/

    But if it's not in the prescribed format, they will probably just correct it and send it again.

    Joanne2121 wrote: »
    2.The company the solicitor is claiming on behalf of is not what is on my deeds?

    Do you mean the name of the lessor/freeholder on your lease?

    That probably just means that the original lessor/freeholder has sold the freehold to somebody else.
    Joanne2121 wrote: »
    3. Am I best trying to purchase the[STRIKE] leasehold[/STRIKE] freehold?

    You can discus buying the freehold if you want.

    If you plan to make alterations, build an extension etc at some point - it may make things easier.
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