Watch lease terms

Ground RentsWith reference to the excellent article on Wednesday concerning ground rent arbitration, it raises a few issues I would like to highlight for the benefit of your readers.

The word "conveyance" in the article should be "covenants". Up until the 1978 Act, when land was developed it was usually done by means of leases or fee farm grants, as it was considered the best way legally to ensure the proper development and management of the land for the benefit of the people living there.

The deeds contained mutual covenants relating to the use of the land, such as not to build indiscriminately, or cause nuisances, and to allow for rights of way and easements for water, sewerage, cables, etc.

Prior to the planning acts, these covenants were a useful form of development control. Someone wishing to further develop their land may find it desirable to first acquire the fee simple and extinguish these covenants.

While a head lease or fee farm grant may date back to the days of the old ascendancy landlords, many tenants hold under leases or subleases from Irish builders or developers dating from the 20th century.

While most leases are for long terms of 500 years or more there are quite a few, particularly in respect of older houses, which are held for terms of only 99 years. These may soon expire or be unmarketable owing to the short term left to run.

Where a house is in the same family for many years, it is easy to overlook the fact that the lease term is running out. Where a lease term has less than 15 years to run or has expired it costs more to acquire the freehold.

It is important to realise that when a lease expires, everything - the land and any buildings - reverts to the landlord.

In circumstances such as these, it would be advisable for people to discuss the matter with their legal advisors and possibly seek to acquire the fee simple under the ground rent legislation.

There is information regarding the legislation and the acquisition of the fee simple in respect of dwelling houses at www.prai.ie, including copies of the forms and guidelines as to how to proceed.

Brigid McCaffrey is ground rents arbitrator for the Land Registry