Leasehold Properties

[catswhiskas]

I have some properties that are leasehold, which means I get a small payment from these.The person that lives in one of them has not paid for over 18 months , my solicitor is trying to chivvy them up, but I have read that you dont have to pay these , is that correct ?

[catswhiskas]

I mean ground rents not the actual property.

[Peter Pedant]

small is small I can tell you

I pay £25 per half year on two properties
They are only claimable in arrears
and altho you COULD do all sorts of things ( unwind the lease I think ) years and years ago all you can do now is sue ( I think )

and for arrears of peanuts I wouldnt have thought it was worthwhile

( altho I have to say I am punctilious in paying mine )

I mean is it worth employing a solicitor ?

When I bought one house one was in arrears in ground rent by six years - and I was indemnified for the amount
then one strike before midnight - up popped the freeholder with a six year back rent claim !
You can only claim six years apparently

You might offer to sell the freehold to the payer - the going rate is ten times the yearly ground rent. When I tried to instruct a solicitor to do this he said - no one ever does this - it isnt worth it and its not worth it for you.

Yes you do have to pay them BUT the only come back now is to sue

[SirOracle]

If the property is in Scotland (known as Feu Duty) this was abolished by an act of Parliament in 2000. From your wording it appears that this is not applicable in your case,and I don't know what the English position is.

[catswhiskas]

Thanks Peter, I thought as much, solicitor has told me that person in house could default on mortgage and property will go back to bank, then if somebody else buys it , they will have to buy freehold to get new mortgage. I guess I will have to be patient.

[Old_Geezer]

I didn't buy the ground rent on my first property for years and years and the ownership changed hands with some not always asking, and then others claiming rent that had clearly been paid, hadn't. Eventually I just bought the freehold. No more hassle. Probably made the place seem more attractive to buyers too.