Ground Rents.

Dáil Éireann Debate, Tuesday - 2 March 2010

Tuesday, 2 March 2010

Questions (211, 212)

Ciaran Lynch

Question:

255 Deputy Ciarán Lynch asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the fact that the legal representatives of ground landlords are demanding arrears of ground rent from leaseholders, the amounts of which are in excess of that to which they are legally entitled having regard to the provisions of the statute of limitations; the steps he proposes to take to stop this threatening practice which is causing distress to leaseholders; and if he will make a statement on the matter. [10597/10]

Ciaran Lynch

Question:

256 Deputy Ciarán Lynch asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the fact that in the case of leases due to expire that ground landlords are entitled, under existing legislative provisions, to seek payment of one-eight the value of the property to buy out the lease; his views on whether this provision is justified; if not, the steps he proposes to take to ensure that leaseholders are not subjected to such penal charges to buy out their leases; and if he will make a statement on the matter. [10598/10]

Written answers

Minister for Justice, Equality and Law Reform (Deputy Dermot Ahern)

I propose to take Questions Nos. 255 and 256 together.

I am aware that in some cases demands for payment of ground rents may not have been made for a number of years. Where, in such cases, a demand for payment is subsequently made by the ground rent landlord, the landlord is statute barred from claiming more than 6 years arrears of ground rent. Moreover, section 27 of the Landlord and Tenant (Ground Rents)(No. 2) Act 1978 provides that a landlord cannot re-enter or take possession of premises in respect of which payment of the ground rent is in arrears.

A legal challenge to the constitutionality of the purchase price provisions of ground rents legislation was heard in the High Court in 2005. While the Court's judgment upholding the constitutionality of the legislation was delivered in early 2006, it has since been appealed to the Supreme Court. While operation of the law in relation to ground rents continues to be reviewed in my Department, there are no proposals for changes pending the outcome of this appeal.