Ground Rent Collection

When a landlord or managing agent sends out a request for payment of the ground rent it has to be done is a prescribed form. It is no longer good enough to write to the lessee demanding that the ground rent be paid. It has to be carried out in a prescribed form as set out in the Commonhold And Leasehold Reform Act 2002.

If the demand is not sent out in the prescribed form the leaseholder is not considered liable to pay the ground rent and no penalties can be imposed by the landlord. Landlords can find details on how to demand ground rent in the prescribed form from the Leasehold Advisory Service.

It is important that the landlord follows the correct procedure as they will have a problem if they are trying to recover several years of ground rents. It is a different matter if the leaseholder needs ground rent receipts because they are selling their flat as they will have to pay the ground rent owed. Otherwise you may have to send out the ground rent demands for each year that is owed.

If the landlord doesn’t send out these demands it doesn’t mean the payment is not due. It means that the landlord or his agents will be unable to charge penalties for late payment and they can’t apply administration charges to the leaseholder. In some instances the penalties incurred can be more than the actual ground rent.