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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3692
Experience:  Solicitors 2 years plus PQE
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Hello. I have an issue with ground rent. I know when i

Customer Question

Hello.

I have an issue with ground rent. I know when i bought the house there was a due fee every year of £5. However the seller didn't have any information on the owner of the ground rent. The solicitor that dealt with the house buy added that the arrears owed could only be claimed back for 6 years.

I recently recieved a letter from Morgoed Estates Ltd, asking for the ground rent in excess of this charge £52.50. Am i liable to pay extra fees/reminders/admin they tac on?

The company is also listed as a 'dormant company' in company house, should this concern me?

I also asked for a quote on 'purchasing' the deed from them should i appoint a solicitor to do this?

Below is the email which i sent and received from the company for reference.

J Roberts.

I have received you letter for outstanding ground rent on the property of 23 lorne terrace ashbrooke sunderland sr2 7bu.

Ground Rent can only be claimed arrears for a maximum of 6 years. With the rent set at £5 that is a maximum of £30 owed.

Could you explain the extra charges to the asked for amount of 52.50 due?

I'd also be interested in purchasing the ground rent from you. As stated over leaf on your letter,

Regards

G Patrick.

Dear Mr Patrick

For Limitation Act purposes we would settle for 6 years’ rent plus the current rent plus the reminder charge i.e. £45.00. The buy-out price we would quote for this rentcharge is and additional £200.00.


Jonathan Roberts
Submitted: 4 years ago.
Category: Law
Expert:  Alex J. replied 4 years ago.
Hi

Thank you for your question.

If the rent charge is under a deed the limitation may actually be 12 years but I would keep quiet about that if they have offered £45.

The company should not be dormant but it is not actually a major concern for you.

If you are going to take an assignment of the rent charge then I would ask a solicitor to do it. To be honest I don't think it is worth it, £200 is 40 years of rent charge. It will take 40 years for you to see a return. If you really want to go ahead with it I would try and negotiate a lower price.

I presume there is no mechanism to increase the rent charge.

I look forward to hearing from you.

Kind regards

AJ