Ground Rent / Services

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    First day back after a holiday and I am lost with something quite simple! If someone could give me a hand that would be most welcome!

    I have a pensioner couple who have moved into a flat from a mobile home. They did not claim at the mobile home.

    They have now sold the mobile home and bought a property in Retirement Living accomodation. The flat is self contained but they must pay ground rent and some services including a lodge manager and communal charges. Whilst the breakdown itself is not clear, I am not sure on the position as regards ground rent.

    I know that we can pay ground rent on a caravan etc but seem to recall that there is a provision about a 21 year lease when relating to ground rent for flats. Will I need to ask them if they own the property freehold or leasehold?

    If they have a lease of more than 21 years, are they eligible for ground rent? Can I pay for the eligible services as well or not?

    As I said I have been away for a couple of weeks (so expect all the rules have changed!!) but if someone could give me any assistance, that would be really helpful!

    Kevin D

    If the ground rent is payable under the terms of a “long tenancy” (i.e. in excess of 21 years), it is ineligible for HB [b:983a33fa7a]HBR 12(2)(a)[/b:983a33fa7a].

    “Long tenancy” is defined in [b:983a33fa7a]HBR 2(1)[/b:983a33fa7a].

    Hope this helps.

    Ozzies Mate

    Who is the ground rent payable to?

    Is just that I have one very similar where the company that the ground rent is payable to the claimant actually becomes a member of by virtue of ownership of the flat that is within the freehold agreement.

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