• Liability For Ground Rent Prior To Purchase.

    By Guest on 09th Jun 2020

    An interesting question.
    I bought a flat in 2014. The original leaseholder had not paid ground rent since the development was built, because the freeholder never demanded payment, so there was no debt. Freehold was sold to a new company. They demanded from me the historic GR that had not previously been charged to the original leaseholder. Housing Act Section 17 states that current leaseholder is not liable for charges incurred by previous leaseholder. It also states that freeholder can only make demands for payment for charges incurred after the freeholder's assignment. I paid the invoice for historic GR, without admitting liability. I am now requesting return of that GR. I have read quite extensively, but can find no interpretation that states I am liable for historic GR before my purchase, when that GR was not demanded of the original leaseholder.
    Can you please tell me if, with refs, I am actually liable for that non existant debt. Thanks...

  • 3 Answers

    By Guest on 09/06/2020

    Check your lease.

  • By NotaryExpress on 09/06/2020

    If someone does not demand payment, that does not mean there is no debt. Imagine if you had an AST (short tenancy) at £500pm and you did not send the rent for a couple of months and were delighted that your landlord did not realise and demand the rent from you. After 3 months, the landlord demands the rent - there is still a debt owed, despite the non-demand prior. There is a limit to how far back it can go though - 6 years I believe.

    I appreciate this is with hindsight, but I would have suggested on your purchase that you obtain an indemnity from the outgoing tenant for unpaid historic ground rent, service charges, insurance premium, etc. I would suggest you take advice from a property litigation solicitor or landlord & tenant solicitor as to your liability for these historic arrears.

    www.notaryexpress.co.uk

  • By Guest on 09/06/2020

    Thank you for your reply.

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