Expected increase in Ground Rent is not being demanded

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    Expected increase in Ground Rent is not being demanded

    Good Morning,

    Long story, short - my BTL property had a 10 year doubling ground rent clause which has now been been amended to one which increases every 10 years by the RPI. The (possible) lesser of two evils. This is not the reason for this post however.

    The lease term commenced on 1st January 2010 (although property not built until 2011), so I would expect the first increase will appear for for the period 1st January 2020 - 31st Dec 2020 - the 10th anniversary.

    The demand for ground rent for this period (1st January 2020 - 31st Dec 2020) was delivered today, but there is no increase - it is still set at the original amount.

    The freeholder's agent is quite well known on forums (I am not mentioning names, of course) and I would have thought they would be well practised in demanding increases on time.

    Have I just made an error in the calculation of the lease's anniversary (does ground rent not start on the first day of the lease?) or have they made the error? If so I wonder if they can, at a later date, demand the increase they have omitted in the demand sent?

    With thanks. Pete.




    #2
    The freeholder's agent can demand any arrears in payment ground rent ,going back to 6 years ago.

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      #3
      It may be a scam. It is not uncommon that some ground rent scamsters claim to have sent demands, deliberately don't send them, and then make cash from the legal process.

      I would pay what they demanded only, send your payment by electronic means, and also send a brief letter to FH at the at time twice from different post offices with certificates of postage. I suppose you letter could mention the problem, but better still just say in the letter "Ground rent as requested has been paid".

      Also ask neighbours what demands they received.

      Comment


        #4
        The lease may allow for GR to increase but the freeholder does not have to increase it. As Gordon explained they can go back 6 years so could claim it in the future anyway. I cannot remember the details but I think there is a notice they need to send to increase GR.

        I would pay GR by cheque and write on the back: "Payment for ground rent for the period xxxx in respect of (your address)". I would include a covering letter and confirm the cheque was cashed. Send the letter signed for and obtain and retain a copy of the receipt too.

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