Ground Rent on Lease illegally altered after signature?
4 years ago | 9 comments
Forfeiture for non-payment of ground rent – would this happen?
12:08 AM, 19th January 2024, 2 years ago
18
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Hello, Having got to the very end of a lengthy conveyance of a probate leasehold house purchase, I have an issue that I am trying to understand the potential risk of actually happening.
The freeholder seems to be absent/deceased in 2017, however I am unable to obtain an absent landlord indemnity cover due to the lack of information the executor can provide on the historic ground rent payments for the property which seem to have ceased over 2 years ago.
My lender has obtained a lender only absent landlord policy so I can complete, but that obviously doesn’t leave myself with any cover and there is a forfeiture clause in the lease for non-payment of ground rent.
Therefore, I am trying to evaluate the actual risk of proceeding on this basis; in practise, if a freeholder ever came forward to demand ground rent then would it be a case of just paying them? Or is it more serious and lease forfeitures actually happen on this basis?
I assume as time moves on, deceased freeholders/nobody to pay ground rent to will become a more common issue so worth exploring more generally.
Any help/insight would be greatly appreciated 🙂
Thank you,
David
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Member Since November 2020 - Comments: 51
11:23 AM, 20th January 2024, About 2 years ago
Only if the ground rent is over £250 (£1000 in London) is forfeiture likely as lease could be classed as an AST just make sure you get all mail at property address.
Member Since May 2017 - Comments: 763
7:55 AM, 22nd January 2024, About 2 years ago
Reply to the comment left by Cathie French at 19/01/2024 – 14:38
May I ask what those breaches were?
Member Since October 2020 - Comments: 1162
8:21 AM, 22nd January 2024, About 2 years ago
I think that the chances of a forfeiture in this circumstance are vanishingly small, but book call with the Leasehold Advisory Service to check.
Member Since October 2022 - Comments: 407
8:23 AM, 22nd January 2024, About 2 years ago
Some years ago a number of houses on a development were eventually offered opportunity to purchase the freehold by the executors of freeholders estate.
GR cannot be paid without a S166 CLRA 2002 demand and without this can be no legal action for non payment of GR. A debt has to be proved by the freeholder as a creditor. This is not service charge arrears under s146 law of property act 1925
Member Since January 2024 - Comments: 6
9:44 AM, 22nd January 2024, About 2 years ago
Reply to the comment left by Freda Blogs at 19/01/2024 – 13:10
Good point. There are 6 house in the row that have the same freeholder so I will ask them on completion.
Member Since January 2024 - Comments: 6
9:45 AM, 22nd January 2024, About 2 years ago
Reply to the comment left by Tim Rogers at 19/01/2024 – 14:07
Thanks, I will try this.
Member Since January 2024 - Comments: 6
9:47 AM, 22nd January 2024, About 2 years ago
Reply to the comment left by NewYorkie at 19/01/2024 – 14:20
I see. That does make sense and is re-assuring.
Member Since January 2024 - Comments: 6
9:48 AM, 22nd January 2024, About 2 years ago
Reply to the comment left by David at 22/01/2024 – 08:21
I have done this, thanks