FIANNA Fail has brought out a Bill to abolish ground rents on domestic dwellings. Some 250,000 homes are still affected by ground rents but, up to last year, only 18.5 per cent had opted to become outright owners of the property.
The 1978 Landlord and Tenant Act enabled householders to buy out the ground rent at minimal cost; forbade the creation of new ground rents; and removed from the ground landlord the right to repossess for non-payment of this money.
However, Fianna Fail's spokesman on equality and law reform, Dr Michael Woods, said yesterday it was now time to set a date from which the many existing ground rents would be abolished. The Bill would be introduced in the Dail early in the next session.
"We are convinced that the time has now come for the historic reform of home ownership by the final abolition of ground rents and the introduction of a simple system of registration in the Land Registry."
Under his party's new Bill, on an appointed day the interest of the ground rent tenant would be "enlarged" to a freehold interest or fee simple. To comply with the constitutional rights of the former owners of the freehold, it would be necessary to provide compensation by a charge on the new free-hold premises.
Dr Woods said the compensation would be calculated "by agreement on a fixed multiple basis". This would be a multiple of the annual rent and would be fixed by ministerial order. The Bill would also allow each householder to receive a freehold certificate. Where a local authority was involved, the "transfer document" would become a freehold certificate.
Dr Woods said a compulsory registration would be introduced to simplify subsequent conveyancing.
"For leases which have expired or have less than 20 years to run, the householder will be entitled to the freehold on a similar basis, without having to pay a portion of the value of the house, as was the case heretofore."
Mr Tony O'Toole, of ACRA, the organisation campaigning for the abolition of ground rents, said they would be seeking an amendment to ensure there was a specific date for implementation of the Bill.