Rent Demand Notice

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    Rent Demand Notice

    Hi. We have been living in our flat for 5 years and have just been sent a letter demanding ground rent for the last 5 years. The letter is a Rent Demand Notice under the Commonhold and Leasehold Reform Act 2002, section 166.

    Previously we have had no demands for payment. Our original freeholders were in place for 3 years until they sold the freehold (I presume) to another party who have now demanded rent for the last 5 years. Neither party has ever sent a demand for ground rent until this week (via a section 166).

    Do we have to fully pay this demand, or part, or any of it?

    #2
    When the freehold changes ownership, the previous freeholder is obliged to offer the leaseholder "Right of First Refusal". Did this happen ?

    Buy a copy of the freehold title from Land Registry Online to check Identity of freeholder, date of transfer and the price paid .

    Comment


      #3
      As said you should of been given right of first refusal to buy the freehold if it was sold, secondly, Ground Rent would of been payable (in accordance with the lease) automatically before s166 took effect, after which it has to be properally demanded, it would appear that they are entitled to ask your for the last 6 years years ground rent (unless the failure to offer you the chance to buy the freehold affects it).

      This thread would appear similar

      http://www.landlordzone.co.uk/forums...d.php?t=10913]

      Andy
      Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

      I do not accept any liability to you in relation to the advice given.

      It is always recommended you seek further advice from a solicitor or legal expert.

      Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

      Comment


        #4
        Originally posted by cornershop View Post
        Do we have to fully pay this demand, or part, or any of it?
        Yes, as long as new L has complied with the 'Right of First Refusal' provisions [s.5 of LTA 1987] and served on you:
        a. old L's Letter of Authority;
        b. Notice under s.3 of LTA 1985;
        c. Notice under s.3A of LTA 1985; and
        d. Notice under s.483 of LTA 1987.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          Dear Jeffery

          I have noticed on a number of posts you have responded with the following:

          Tell new L that you await receipt of:
          a. old L's Letter of Authority;
          b. Notice under s.3 of LTA 1985; and
          c. Notice under s.48 of LTA 1987.

          In reference to what should be provided by a new landlord when they come into possession.

          Shortly I will be a new landlord of a fully let student property, and have prepared welcome packs with all our details contained within.

          Our solicitor is not enormously forthcoming in terms of letting us know what she is upto. Can I expect her to issue the following:

          b. Notice under s.3 of LTA 1985; and
          c. Notice under s.48 of LTA 1987.

          Would you also expect her to have requested a letter of authority from the previous vendor previous vendor?

          Or would you say that all these jobs are the solely the responsiblity of the new landlord?

          Many thanks

          James

          Comment


            #6
            Originally posted by tucketjw View Post
            I have noticed on a number of posts you have responded with the following:

            Tell new L that you await receipt of:
            a. old L's Letter of Authority;
            b. Notice under s.3 of LTA 1985; and
            c. Notice under s.48 of LTA 1987.

            In reference to what should be provided by a new landlord when they come into possession.

            Shortly I will be a new landlord of a fully let student property, and have prepared welcome packs with all our details contained within.
            This is not a long leasehold matter as the student lets are not long leases. If you try the residential letting forum there are members there that can help.

            The vendors solicitor should confirm that either client, named I expect in the tenancies, has transferred the property to you and the rent apportionment, or at least from x you pay rent to y.

            Notice has to be given under section 47, which is essential the same information.

            If your solicitor is not forthcoming then perhaps remind them that they are being paid to handle the transaction and, as long as out have instructed them to do so, with the relevant fee, advise you and handle this matter. That requires them to explain it if asked.

            Perhaps a quick polite email saying that you are all at sea with the mechanics of advising the tenants and unsure of your obligations beyond what they have done for you on the purchasable. Can they explain or arrange a telephone call to run through this later on Monday or at the latest Tuesday.

            If they resist then perhaps have a word wroth the managing partner.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment

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