ABSTRACT

A certain amount of litigation can be expected to clarify the precise intention of section 166 when it comes to service of ground rent notices. Because section 166 is so specific in its requirements, it seems unlikely that any compromise formula could be reached by, for example when rent is due quarterly, issuing one annual ground rent notice with quarterly reminders. The way the service provisions are framed poses some practical problems for property managers, especially for sublet flats. A ground rent notice will waive the right to forfeit, so landlords in this position will have to choose whichever approach is the lesser of two evils in their particular circumstances. One final point on service of ground rent notices: it was the practice of some landlords to refrain from sending out rent demands to leaseholders who were in breach of covenant in order to avoid any waiver of the right to forfeit.