Understanding Ground Rent Liability

New flat owners often ask whether they are liable for previously unpaid ground rent. The short answer is yes—but the situation can be complex. Buyers are responsible for ground rent arrears if the landlord has already issued a demand or if there are unpaid arrears without a demand yet issued.

Why Buyers Can Inherit Ground Rent Arrears

Although it may seem unfair, freeholders have the legal right to pursue new owners for outstanding ground rent, even if the debt was built up by a previous owner. In the worst cases, failure to pay could result in forfeiture, meaning the landlord could take possession of the property.

The Role of Your Conveyancing Solicitor

The best way to avoid unexpected ground rent debts is to ensure your conveyancing solicitor thoroughly checks the property’s financial history before you complete the purchase. The seller’s solicitor should provide financial and lease-related information, but there is no legal obligation for them to do so—so buyers must be proactive.

Know Your Rights as a Leaseholder

If you are buying a leasehold property, it’s crucial to understand your rights and responsibilities. Being informed can help you avoid legal and financial pitfalls.

Where to Find Reliable Information

To learn more about leasehold properties and ground rent, you can check out useful online resources such as:

• Leasehold Advisory Service (LEASE)
• Propertymark
• Government website (.Gov.UK)

Need More Help? We’re Here for You

We offer E-books covering essential leasehold topics such as lease extensions, leasehold enfranchisement, and the right to manage. If you have further questions, our expert team is available via phone or live web chat on our website.