AST- can L recharge ground rent/service charge to T?

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  • AST- can L recharge ground rent/service charge to T?

    Can anyone tell me if it is okay legally etc. to pass on the ground rent/service charges to the tenant? on top off the monthly rent. I am quite new to all this! thanks

  • #2
    IMHO, this is not advisable. If the tenant fails to pay, then you could potentially loose your property. It is therefore better to adjust the rent as appropriate and then pay your lessor the ground rent and maintenance charges directly. Then you know it's paid.

    P.P.
    Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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    • #3
      thanks for the reply - so it okay to tell the tenant that the rent is (for example) £500pcm and there is also £50 per month to pay on top for ground rent/maintenance, I'm just a little confused as to whether its okay for the tenant to know they are paying it or if its best to just put the rent up an extra £50 from what I was going to charge - I havent let this property just yet.

      The reason I ask this is because I have another leasehold property which the tenant has been in for 4 months but so far I havent had to pay any ground rent/maintenance but I know it will all commence in the next 3 months so am wondering how the best way to go about passing in on to the tenant would be.

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      • #4
        Originally posted by Ali23 View Post
        thanks for the reply - so it okay to tell the tenant that the rent is (for example) £500pcm and there is also £50 per month to pay on top for ground rent/maintenance
        Why not just say the rent is £550pcm?

        You just need to set the rent so that it covers all your outgoings, including ground rent. If the tenant is willing to pay it, good. If not, bad.

        There's no need to tell T what you're going to be spending the rent on.

        Peter

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        • #5
          1. As lessee, you have an obligation (in your lease) to pay gr/sc to lessor (L).
          2. You should not try to unload this liability onto your subtenant (S) who has no contractual link with L.
          3. The rent which S pays you should suffice for you to pay gr/sc to L. You can increase that rent, of course, but only by:
          a. using any rent increase mechanism in the AST; or
          b. under s.13 of 1988 Act.
          4. Any such increase should not identify a gr/sc-related element.
          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).

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          • #6
            thank you for all responses - they are very helpful

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