Changes to Residential Ground Rent Demands

Janice Northover

Landlords don’t get caught out!

A recent “correction slip” by the Department for Communities and Local Government (DCLG) has seen the prescribed form of rent demands served on residential tenants changed.

The DCLG was concerned that the previous wording explaining the landlord’s right to forfeit in the event of non-payment was misleading. The previous wording was open to interpretation that the landlord could only forfeit where all of the amounts outstanding had been unpaid for more than 3 years.

The notes have now been changed to make it clear that forfeiture action cannot be taken for non-payment of rent, service charges or administration charges unless the unpaid amount is more than £350 or consists of (or includes) an amount which has been outstanding for more than 3 years.

Because the change has been brought about by way of a correction slip and not a formal piece of legislation amending the original Regulations*, not many people are aware of it.

Landlords and managing agents should therefore ensure that paragraph 3 of their rent demands is amended to include the revised wording as follows:

"Section 167 of the Commonhold and Leasehold Reform and regulations made under it prevent your landlord from forfeiting your lease for non-payment of rent, service charges or administration charges (or a combination of them) unless the unpaid amount is more than £350 or consists of, or includes an amount that has been outstanding for more than three years."

Landlords will already be aware that failure to strictly comply with the Regulations will result in the demand being invalid and consequently being unable to enforce payment. It is therefore vital that they amend their demands to reflect these changes.

Interestingly, the changes only apply to England; there is no equivalent in Wales.

* Landlord and Tenant (Notice of Rent) (England) Regulations 2004

Changes to Residential Ground Rent Demands

Janice Northover

The Team: