Whilst a landlord is entitled to the ground rent that is stipulated under the terms of the lease they must send out a ground rent demand. Failure to do so means that the leaseholder is entitled to withhold payment until a demand is received. The demand must include certain information and should be served in a prescribed form.
The landlord is not able to penalise the lessees for non payment of ground rent unless a ground rent demand has been previously sent. If the landlord has sent a demand and the ground rent has not been paid a penalty may be incurred. It is important to note this as fines and penalties are often levied with no basis because the correct procedure has not been followed by the landlord..
When the demand is sent to the leaseholder is must contain the following information:
The name and address to whom the payment must be made. It must also contain the period for which the ground rent is due, name of the landlord or his agent that is dealing with the demand. Any notes or supporting documentation for the demand. It is very important that the correct procedure is followed as the landlord will be unable to recover any monies unless they have done so.