It is not often we produce good news on the ground rent front, but here is an example.
A leaseholder with the Hyde Group housing association was appalled to receive a ground rent demand of £600, and contacted LKP.
She had been paying £50, but she had extended the lease through the statutory process in 2015, which means a 90-year extension at a pepper-corn rent.
She bought the flat in 2000 for £95,000, and extended the lease when it had 72 years left to run.
Unaccountably, the Hyde Group then demanded £600 in ground rent.
Martin Boyd, of LKP, suggested that the leaseholder send a copy of the page to the Hyde Group which refers to a peppercorn and ask why it believes £600 ground rent is due.
“It looks like you were following the process of a formal lease extension so it should be set to a peppercorn,” wrote Mr Boyd.
“If as part of the deal your solicitor agreed to an informal extension (i.e where the parties set what ever terms they can agree on) your solicitor should have made the matter very clear.”
Eight days later, the leaseholder was back in touch: “I did as you said below and emailed them with the ‘peppercorn rent’ page of my new lease and they got back to me saying that they had made a ‘mistake’ with the charge, and it should have been £50 not £600.
“Thanks again and keep up the really great work that you are doing for us.”
Sorry perhaps I don’t get it! This article is confusing. If the extension was carried out via statutory process then the ground rent is at peppercorn and not £50. why is she being billed £50?
Well,spotted. She was paying £50 ground rent prior to the statutory extension when it became peppercorn. So why is she happy to carry on paying £50 ?
I am also confused about that. Perhaps admin could clarify what happened?
You might like to know that apart from the Brexit debate in parliament yesterday (which got a few mentions) the matter of the Hyde Housing Association was also put to the Housing Minister.
She should have just sent them a peppercorn – after all that is all she actually & literally owed them…