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View Full Version : AST- can L recharge ground rent/service charge to T?



Ali23
25-02-2008, 12:10 PM
Can anyone tell me if it is okay legally etc. to pass on the ground rent/service charges to the tenant? on top off the monthly rent. I am quite new to all this! thanks

P.Pilcher
25-02-2008, 12:29 PM
IMHO, this is not advisable. If the tenant fails to pay, then you could potentially loose your property. It is therefore better to adjust the rent as appropriate and then pay your lessor the ground rent and maintenance charges directly. Then you know it's paid.

P.P.

Ali23
25-02-2008, 12:41 PM
thanks for the reply - so it okay to tell the tenant that the rent is (for example) £500pcm and there is also £50 per month to pay on top for ground rent/maintenance, I'm just a little confused as to whether its okay for the tenant to know they are paying it or if its best to just put the rent up an extra £50 from what I was going to charge - I havent let this property just yet.

The reason I ask this is because I have another leasehold property which the tenant has been in for 4 months but so far I havent had to pay any ground rent/maintenance but I know it will all commence in the next 3 months so am wondering how the best way to go about passing in on to the tenant would be.

pcwilkins
25-02-2008, 12:56 PM
thanks for the reply - so it okay to tell the tenant that the rent is (for example) £500pcm and there is also £50 per month to pay on top for ground rent/maintenance

Why not just say the rent is £550pcm?

You just need to set the rent so that it covers all your outgoings, including ground rent. If the tenant is willing to pay it, good. If not, bad.

There's no need to tell T what you're going to be spending the rent on.

Peter

jeffrey
25-02-2008, 13:00 PM
1. As lessee, you have an obligation (in your lease) to pay gr/sc to lessor (L).
2. You should not try to unload this liability onto your subtenant (S) who has no contractual link with L.
3. The rent which S pays you should suffice for you to pay gr/sc to L. You can increase that rent, of course, but only by:
a. using any rent increase mechanism in the AST; or
b. under s.13 of 1988 Act.
4. Any such increase should not identify a gr/sc-related element.

Ali23
25-02-2008, 13:19 PM
thank you for all responses - they are very helpful :)