Ground Rents for Conveyancers - The Key Issues
A government consultation paper published in 2017 stated that ‘there was substantive evidence that the problem of … ‘onerous ground rents’ had been increasing since at least 2005 (if not before).’
The government subsequently announced that it intended to introduce legislation so that ground rents on newly established leases of houses and flats are set at a peppercorn rent.
The ‘ground rent scandal’, in part, also prompted the Competition and Markets Authority to take enforcement action against four leading developers for alleged unfair practices (including in relation to onerous ground rents).
Also, high levels of ground rent can not only affect the marketability of flats; they can also deter lenders from providing mortgage finance to prospective buyers.
This virtual classroom seminar is designed to explore essential issues surrounding ground rents in the context of residential leases.
What You Will Learn
This live and interactive session will cover the following:
- The differences between ground rent and additional rents reserved
- The implications of rent expressed to be payable ‘whether or not formally demanded’
- The legal requirements for valid ground rent demands
- The interrelationship between high rents and the open market value of the flat
- Is the lease an assured tenancy? Possession claims versus forfeiture
- How concerned should conveyancers be about Ground 8 possession claims for rent arrears?
- Lenders’ Part 2 requirements: initial rent and subsequent reviews
- The effect of the ‘public pledge for leaseholders’ signed by ‘leading developers and freeholders’
- Are RPI increases always acceptable?
- The government proposals to ban ground rents in new leases in England and the Welsh government’s likely equivalent policy
- The latest on the CMA’s enforcement cases into unfair ground rent practices
- Options for setting the rent when a lease extension is ‘voluntary’
- A lessee’s liability to pay lessor’s costs resulting from non-payment of rent
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.