Does overdue ground rental follow the property or the tenant?

Discussion in 'Legal Issues' started by Beano, 12th Jun, 2018.

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  1. Beano

    Beano Well-Known Member

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    Does ground rent arrears follow the person or the leaseholder (lessee) ?
     
  2. Beano

    Beano Well-Known Member

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    Does ground rent arrears follow the person or the current leaseholder (lessee) ? (IE attached to the property improvements (house) or the tenant ?)
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Totally depends on the lease. Generally the lessee would be liable however this may be taken from bond or personal guarantee or be paid as a condition precedent to the assignment of the lease.
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Depends on the lease. The lessee is generally responsible for the payment of rent.
     
  5. Perthguy

    Perthguy Well-Known Member

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    It depends. I have seen a commercial lease to a company with a personal guarantee by a person and the lease was secured by residential property.

    In that case, the order of enforcing unpaid rent is:

    1. the company (the tenant)
    2. the person (due to personal guarantee)
    3. the residential property

    Of course that is a dodgy set up. Lose your business, lose your house. Not good.
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    unless you're the lessor and you have more than an each way bet on getting your money (after the first mortgagee on the house).
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The lessee
     
  8. Beano

    Beano Well-Known Member

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    Thanks Terry
    I spoke to the new (purchaser) lessee's solicitor and told them about the arrears
    They wrote to the vendor (current lessee) and asked for a solicitor's undertaking the arrears will be settled
    So looks like arrears will be settled on settlement
     
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