In the current economic climate, ground rent is becoming a valuable source of income, therefore when it comes to non payment of ground rent, quick recovery is crucial.
The majority of leases will usually state a date for payment, however, until an official ground rent demand is served upon the leaseholder, the rent is not formally payable and cannot be legally recovered.
Be careful that there are no errors in the demands which could leave you exposed and give leaseholders an excuse for non payment of ground rent. Ground rent demands must follow a prescriptive format, but, unfortunately, it’s easy to fail to comply with court rules.
By being thorough and ensuring your ground rent demands are compliant from the outset will prevent any payment delays as well as serving as a reminder to the leaseholder that they have a set period of time in which to send payment.
For example, your ground rent notice of demand should include:
- The amount payable
- The date in which payment is demanded or if the demand is issued after the due date, the payment date on which the ground rent should be payable under the terms of the lease
- The payment date specified in the demand must be no less than 30 days or over 60 days after the date of the notice, or before the period agreed in the lease.
- The demand should be sent directly to the address the ground rent is payable for, unless an alternative address has been previously agreed with the landlord.
- The name of the leaseholder liable for payment of the ground rent
- The time period for which the rent is due
- The name and address of the landlord (or agent) serving notice to the leaseholder
- The name and address of person or company that should receive the payment
- Any supporting information relevant to the individual demand notice
Here at Clarion, we offer a full property arrears recovery service to landlords and property management companies in which we will review your current ground rent demands for free and provide advice and improvements to your demands where required. If you’re unsure as to whether your demand notice is legally binding, simply send us a copy and our specialist team will be on hand to help.
Disclaimer: Anything posted on this blog is for general information only and is not intended to provide legal advice on any general or specific matter. Please refer to our terms and conditions for further information. Please contact the author of the blog if you would like to discuss the issues raised.