With the September quarter day looming we have recently had a number of calls from confused Leaseholders claiming that their Landlords are still charging them ground rent, even after they have extended their leases under the Act.
I wouldn’t be surprised if there are more Leaseholders out there who continue to pay the rent without knowing that they don’t need to. This is something we will now endeavour to emphasise to our clients who obtain a statutory lease extension – it seems some of the larger Landlords may not be updating their systems. Property managers also take note!
If you have negotiated a lease extension outside of the Act (i.e. ‘informally’), ground rent may still be payable, depending on the arrangement you have come to with your Landlord. However, don’t forget that a statutory lease extension of 90 years executed under the relevant legislation eliminates the ground rent.