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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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What is the meaning of the term tenant in Section 166 (6) of

Resolved Question:

What is the meaning of the term tenant in Section 166 (6) of the Commonhold and Leasehold Reform Act 2002 ?
I own a leasehold apartment on a buy-to-let basis. I was (mistakenly) under the impression that the tenant would pay the ground rent. It now appears that the company collecting the ground rent wrote to me with bills and demands but at the apartment address even though they have my home address on file. My tenant did not pass these onto me.
I have now received a solicitor's letter demanding the outstanding ground rent (£150 for 18 months) plus a further £378 for their legal costs. Clearly I am willing to pay the £150 (even though they won't give me their bank details, have barred me from paying online through their web system and have returned my cheque) but feel that I shouldn't have to pay solicitor's costs as the ground rent company knew how to contact me but failed to do so (they are quoting the statute in my first paragraph as proof that they have taken all legal measures to contact me as they can't use my home address without my permission in writing). Do I have grounds?
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask if you notified the landlord in writing of your home address advising them that was the contact address they should use for service of documents? Alternatively your solicitor may have done this as part of your purchase. If you or your solicitor did, do you have a copy of the correspondence?

Customer:

My home address is stated on the lease agreement which the property company has on their records (in fact they quoted it to me when I rang them). When the matter was first raised in January and they asked for my home address in writing I did that but they are now claiming they never received it. As I heard no more from them (until the solicitor's letter) or my estate agent I assumed the matter had been resolved. As the Act they refer to says the tenant should give permission to send letters to an alternative address does this apply to me as I am not the tenant of the property?

Joshua :

Thanks. Do you still have a copy of that letter you sent to them?

Customer:

I have an electronic copy as I did it in MS Word.

Joshua :

Perfect. That is fine. The CLRA places a number of obligations on a landlord in order to be able to validly collect rent from a tenant. If I may I will first answer your specific question but then go on to outline all the requirements the landlord has to fulfil in order to validly demand rent which based upon what you say, you should be able to leverage to your advantage

Joshua :

first of all, s166 CLRA defines you as tenant if you are the owner of the flat because it provides that a tenant is a tenant under a long lease. Your tenant who rents from you cannot be this tenant because he is not the tenant of the long lease - he is a shorthold tenant under the Housing Act. This makes you liable for the rent demand subject very much to what follows

Joshua :

The Act however places a number of obligation on the landlord and the first step is to ensure that he has complied with all of these obligations, because if he has not, the demand is invalid and all other considerations become irrelevant.

Joshua :

If the ground rent must be demanded in prescribed form, and completed in accordance with section 166. There is a link below to the prescribed form the demand must take which you can check against the demand received. Next the date for payment of the ground rent given in the notice cannot be earlier than 30 days from the date notice is given, nor more than 60 days after that date. In addition the date for payment cannot be earlier than the date set out in the lease itself. Again if the landlord fails any of these tests the demand is invalid.

Joshua :

s166 provides that the notice "may" be sent by post. If the notice is sent by post, it must be addressed to you as the long leasehold tenant at the dwelling on which the ground rent is payable, unless the you the tenant has notified the landlord in writing of a different address in England & Wales at which he wishes to be given notices under this section. (In which case it must be addressed to him there)

Joshua :

Accordingly if the landlord passes all the above tests then your defence will be that you notified the landlord in writing in accordance with section 166(6) CLRA 2002 of your address for service and accordingly the ground rent notices are invalid as they have been served at the wrong address.

Joshua :

if the matter were to proceed to court, ultimately the matter would turn upon whether the court accepts that you did notify the landlord in writing as you say. Obviously the more evidence you have in this respect the better though the reality is you are likely to have no better than the copy of the letter and evidence of the creation of the letter on your computer. The test is only one a balance of probability and sometimes it can simply be a question of who the judge believes. However, the act does provide a series of potential defences available to you.

Joshua :

Would you like a link to the format the demand must take to be valid?

Customer:

Yes please.

Joshua :

Certainly. one moment...

Joshua :

http://www.lease-advice.org/documents/Form_of_Rent_Demand_Notice_England.pdf

Customer:

Great. Many thanks.

Joshua :

A pleasure. Have I been able to help you with all your questions on the above?

Customer:

Yes thank you.

Joshua :

Thanks. Good luck with your defence

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
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