Thank you. I can see what has happened. If you do not collect the
ground rent, then after 12 years, you can no longer collect the arrears from
before 12 years. Ie, the maximum period, you can go back is 12 years. So if you
never collect rent and then one day you decide you want to, you can only
collect 12 years worth. The limitation period is 12 years under a deed which is
The rent never stops becoming due and your Freehold never falls
into disuse. The default situation is the Freehold because the leasehold is
created out of the Freehold.
These are almost peppercorn leases and the cost of collecting
the money is probably more than you are collecting. What you can do, of course,
is collect it . Every 11 years, which is £22 per house, which is £242 for 11
houses... Once every 11 years. Can you be bothered?
Of course, whenever anybody sells the house, you can ask for all
the arrears going back as far as you like before you will confirm that the
ground rent is paid up to date. You can only enforce 12 years in court (which
is not worth it). You can insist on as many years arrears as you like for ground
rent receipt purposes.
It then comes down as to whether you want to sell the freeholds or
If the houses are likely to be knocked down or the area redeveloped,
your Freehold may be worth a substantial amount of money.
If they are not, then your Freehold is worth very little.
If one person in the area bought the freehold but none of the
others wanted it, it makes the residue of the freehold worth less because the
person in the middle and then owns the freehold can hold the others to ransom.
So it is only worth selling the freehold if everyone wants to buy them.
Typically, this kind of freehold would sell between £250 and £500
plus your legal costs, apps, another 5 pounds.
It really comes down to what is likely to happen to the houses in
the future and am sorry to have to tell you, but I don't have a crystal ball.
that answer the question? Can I help further? Can I answer any specific points?
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