Q&As

Where a transfer contains an estate rentcharge, is it possible to agree that section 121(4) of the Law of Property Act 1925 allowing the rentcharge holder to create a rentcharge lease, shall not apply? If it is possible, do you have a Precedent agreement in this regard?

read titleRead full title
Published on LexisPSL on 17/05/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Where a transfer contains an estate rentcharge, is it possible to agree that section 121(4) of the Law of Property Act 1925 allowing the rentcharge holder to create a rentcharge lease, shall not apply? If it is possible, do you have a Precedent agreement in this regard?
  • Rentcharges
  • Estate rentcharges
  • Extinguishment of rentcharges
  • Remedies for recovering the rentcharge
  • Whether section 121(4) can be disapplied by agreement

Where a transfer contains an estate rentcharge, is it possible to agree that section 121(4) of the Law of Property Act 1925 allowing the rentcharge holder to create a rentcharge lease, shall not apply? If it is possible, do you have a Precedent agreement in this regard?

Rentcharges

A rentcharge is the payment of a fixed sum of money on an annual basis by the freehold owner of the affected land to the holder of the rentcharge.

Section 2 of the Rentcharges Act 1977 (RcA 1977) prohibited the creation of new rentcharges.

Estate rentcharges

An estate rentcharge is a rentcharge which is created for the purpose of securing compliance with a covenant. RcA 1977, s 2(3)(c) provides that the creation of new estate rentcharges is not prohibited.

Extinguishment of rentcharges

RcA 1977, s 3 provides that all rentcharges will be extinguished at the latest 60 years after the passing of the RcA 1977, ie in 2037.

Remedies for recovering the rentcharge

In order for a rentcharge holder to be able to recover the annual sum of money to which they are entitled under the rentcharge, section 121 of the Law of Property Act 1925 (LPA 1925) provides a rentcharge holder with a number of legal remedies if the rentcharge is not being paid by the freehold owner.

LPA 1925, s 121(4) provides that if the rentcharge or any part of it is unpaid for

Related documents:

Popular documents