Q&A - Service Charges & Ground Rent 

July 20, 2009
by News on the Block Editorial Team

QUESTION

Dear Sir,
I am thinking of buying the freehold of my house, do I have to pay the service charges and ground rent while I am negotiating with the landlord?
Name Witheld

ANSWER

Yes, unfortunately, until the terms have been agreed and completion has taken place, the current arrangements for service charges and ground rent prevail. Some leaseholders are mistakenly under the impression that acquiring the freehold (or even extending a lease) somehow puts other payments on hold, but it does not. If there are disputes about service charges, it could
be possible to pursue these in parallel to acquiring the freehold, but eventually the two will be bound to be linked as completion nears.
Alex Greenslade, Director of Leasehold Solutions

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