The Department of Communities and Local Government has produced two leaflets on rent charges and the Rentcharges Act 1977 which will be of interest to conveyancers.
Since 1977 the Rentcharges Act has limited the creation of new rentcharges and will cause most rentcharges to be automatically extinguished in 2037, but until then existing rentcharges can still cause delays and problems for purchasers of properties where rentcharges apply.
Practically we all know that rentcharges are recorded in the Charges register and that it can be difficult to obtain receipts where rentcharge owners are known and cause a debate between the parties where they are not.
The new leaflets set out how to apply to extinguish or redeem a rentcharge where the charge owner is known. By payment of a single lump sum of approximately 16 times the annual rentcharge the charge can be redeemed.
Given the challenges many people are having today in selling their properties and with little sign of the market improving we wonder if this is an additional service conveyancers may wish to offer their clients either immediately before or after a conveyancing transaction.
The leaflets can be found by following the links below.