guidelines on ground rent on private house

magicbastarder

does anyone have a link to what the regulations/law is on ground rent?

we have received a demand for ground rent on our house after roughly 10 years here. this is no major issue, we knew when buying that we didn't own the freehold on the land. the arrears demanded are not onerous, but i'm just curious as to a few things, e.g. as to how far back arrears can be demanded, and what the legal situation is regarding the claim in the letter that we need to seek permission before undertaking contruction work.

at least one neighbour has received an identical letter for an identical arrears amount.

thanks!

BrokenArrows

This link says its a maximum of 6 years for arrears.

https://www.lawsociety.ie/Solicitors/Practising/Practice-Notes/Arrears-of-Ground-Rent/

As for the "permission for construction" issue. That is a standard part of being a lease holder. You need to seek permission to perform any major works on the property. Obviously there is a level of common sense with the "construction" element. Painting or installing/removing shelving is not an issue. Installing a patio, extension or knocking down walls obviously is. The obvious reason for this is that you dont own the land, and if your work affects the value of the land negatively then they will refuse you permission. Also they need to make sure the work you are doing doesnt negatively affect the external structure of the building which they may also own.

magicbastarder

cheers, the fact that the neighbour got an identical demand for arrears was what led me to believe there was a maximum there. i know a lot of our neighbours have undertaken significant construction work (we haven't) and you can bet no permission was asked; apparently rent hasn't been demanded in over 20 or 30 years so most people wouldn't know who to ask or would even consider it i'd say.

BrokenArrows

https://www.boards.ie/discussion/comment/117727979#Comment_117727979

If it hasnt been collected in that period of time its likely the leaseholder has probably gone into care or something and someone handling their estate has realised that the rent is not being collected.

GerardKeating

https://www.boards.ie/discussion/comment/117727979#Comment_117727979

I wonder, if the ground rent has not been demanded in 20+ years, could adverse posession apply, or has this recent demand reset the clock ?

Aaargh123

following for interest

A2LUE42

I'd be verifying how valid the request is. I know someone who got a request like that a few years back from a company claiming they had been engaged by the owner to run a management company for the properties. All looked very valid, except the overall owner happened to be a relative who knew nothing about it.

Tow

It is probably cheaper to buy out the ground rent than do the legal work and messing around for adverse possession.

magicbastarder

https://www.boards.ie/discussion/comment/117729164#Comment_117729164

yes, we're going to follow up on this. the letter tells how we can verify the claim, by going to the PRAI - but i don't yet know if this will show the owner or the agency representing the owner (the letter is from an agency claiming to represent them).

the letter claims they'll be billing us twice a year, which given the rent is not exactly lucrative, seems an expensive way of going about it.

and yes, buying out the lease would cost just over 1k, which is what we're thinking we'll do, if the letter is legit.

magicbastarder

https://www.boards.ie/discussion/comment/117729124#Comment_117729124

would that apply in that we (in effect) agreed to the lease when we bought the house 10 years ago?

listermint

https://www.boards.ie/discussion/comment/117729269#Comment_117729269

Buy the lease out. It makes sales much cleaner and or any future conveyance e.g inheritance .

magicbastarder

yep, we just need to ensure the letter sent is genuine; it was addressed to 'the occupier' so could be legit, could be a fishing expedition.

Victor

https://www.boards.ie/discussion/comment/117729124#Comment_117729124

I suspect not, as the resident is there by permission, as evidenced by the lease.

iwillhtfu

I thought these things were a long passed memory of our absentee landlords. I guess the kids feel they can make a quick buck from it. The father used to get hand written letters from an English gentleman on random years (could be two could be ten) requesting ground rent be settled which also was a nominal figure, they were carefully filed into the fire. The house has been bought and sold several times since without issue.

magicbastarder

depends on how long the lease is, from what i understand - no issue buying and selling, it's when the lease starts getting near the end that things can get interesting.

Victor

https://www.boards.ie/discussion/comment/117733809#Comment_117733809

It can also be problematic for non-residential property.

surrender monkey

Op you can contact the ground rents section in the land registry to buy out the freehold by arbitration. Have a look at the landlord and tenant ground rents (no 2) act, 1978.

Peregrinus

https://www.boards.ie/discussion/comment/117729124#Comment_117729124

Arrears of rent more than 12 years outstanding cannot be collected (unless they have been acknowledged, etc, in the past 12 years) - they are statute-barred. But adverse possession doesn't run for the benefit of a tenant against a landlord. It may start to run when the lease expires.

Claw Hammer

https://www.boards.ie/discussion/comment/117729124#Comment_117729124

Adverse possession only begins to run 1 year after the lease expires.

Claw Hammer

https://www.boards.ie/discussion/comment/117729282#Comment_117729282

You took an assignment of the lease. Technically, what you bout was an interest in the lease on the house.

Weyhey

Should the folio for a property (i.e. obtained on landdirect.ie) show this company as the leasehold owners? A relatives very recent folio application show some 4 Reverends as the leasehold interest parties and it says this was was created in the 1940's but yet they are getting ground rent letters similar to above?