Ground Rents

1. Introduction

2. The right to acquire the Fee Simple

3. The persons to whom the right is given

4. Restrictions on the right

5. Expired Lease

6. Statutory Tenancy

7. Intermediate Interests

8. Housing Authority Tenants

9. Vesting by the Registrar of Titles

10. Ground Rents Arbitrator

11. Regulations and Forms

12. Documents of Title

13. Searches by the Ground Rents Section

14. Description of property on Vesting Certificates

15. Personal Representatives

16. Tenants in Common and Joint Tenants

17. Limited Owners

18. Registration of Vesting Certificates

19. Modification and cancellation of Vesting Certificates

20. Certified copies of lost Vesting Certificates

21. Practices particular to Consent Cases

22. Authorisation File

23. Conversion of Consent Cases to Arbitration

24. Arbitration Cases

25. Processing Arbitration Cases

26. Business Premises

27. Subsidary and Ancillary

28. Building divided into flats

29. Fixing the Purchase Price

30. Purchase Money Cases

31. Awards Register

Appendices: 

Appendix 1 – Guide for making an application (including Forms) & Useful Links

Appendix 2 – Alternative conditions in section 10

Appendix 3 – Ground Rents Fees

Appendix 4 – Standard queries

1. Introduction

1.1 The Ground Rents Purchase Scheme was introduced by the Landlord and Tenant (Ground Rents) (No.2) Act, 1978 , (hereinafter referred to as “the Act”), which

       1. re-defined the categories of tenants given the right by law to acquire the fee simple interest in their premises, and

       2. empowered the Registrar of Titles:

  • to vest the fee simple interest in such tenants, where the premises comprise a dwellinghouse, and
  • for that purpose to arbitrate where agreement is not reached between tenant and landlord.

1.2 Other relevant Acts:

  • The Landlord and Tenant (Ground Rents) Act, 1967 , (hereinafter referred to as “the 1967 Act”), gave to certain tenants the right to acquire the fee simple interest in their property, and set up a procedure for Arbitration by County Registrars.
  • The Landlord and Tenant (Ground Rents) Act, 1978 , prohibited the creation of leases of private residential houses after the 16th May, 1978.
  • The Ground Rents Purchase scheme introduced by the Act was initially given a life of 5 years, but this was extended by subsequent acts and, finally, the time restriction was removed by the Landlord and Tenant (Ground Rents) (Amendment) Act, 1987.
  • The Act was amended by the Landlord and Tenant (Amendment) Act, 1980, (“the 1980 Act”) and the Landlord and Tenant (Amendment) Act, 1984 , (“the 1984 Act”) the British Irish Agreement Act 1999, as amended by the British-Irish Agreement (Amendment) Act 2005, & The Landlord & Tenant (Ground Rents) Act 2005

1.3 Meaning of “Ground Rents” Nowhere is the term “Ground Rent” defined. It is, however, conceived to be a rent paid by a tenant where the tenant has provided the buildings and the landlord has provided the ground only. The various conditions can be seen as attempts to define exactly the circumstances where this general principle obtains.

2. The right to acquire the Fee Simple

2.1 The right is defined by section 8 of the Act, i.e., a right “to enlarge” an “existing interest” into a fee simple, “and for that purpose to acquire by purchase the fee simple in the land and any intermediate interest in it.”

2.2 A lease of land made after the passing of The Landlord And Tenant (Ground Rents) Act, 1978 is void if the lessee would have the right to enlarge his interest into a fee simple and the permanent buildings are constructed for use wholly or principally as a dwelling. A person who has given consideration for such a void lease has the right to acquire the fee simple in the land and any intermediate interests therein at the expense, as to both purchase money and costs, of the person who purported to grant the lease.

2.3 The right to purchase exists only to enlarge the interest held by lessee into a fee simple interest. Where the lessee already has the fee simple, there is no right under the Act to acquire intermediate interests. [see Metropolitan Properties Ltd. V John O’Brien & The Commissioners of Public Works [1995] 2 ILRM 383]

3. The persons to whom the right is given

3.1 The right is given by the Act, where there are permanent buildings on the land:

(i) to persons holding land under a lease (section 9) provided one of the conditions set out in section 10, (as expanded by sections 12 and 14 of the Act, and as amended by sections 71 and 72 of the 1980 Act), is complied with; [see Appendix 2 for a list of these conditions]

(ii) to persons holding a yearly or statutory tenancy (section 15 of the Act, as amended by section 9 of the 1984 Act), where all the conditions set out are complied with;

(iii) to tenants of houses provided by housing authorities (section 26(1)) , and

(iv) to housing authorities who have provided dwellings under statutory authority on land to which they do not have the fee simple, (section 26(9)).

3.2 The categories of tenants entitled to acquire the fee simple were extended by section 73 of the 1980 Act to include persons who, as at 1 August 1978, were entitled to acquire the fee simple under section 3 of the 1967 Act. Under section 12 of the 1984 Act, such persons holding under an expired lease and making an application are given the right to continue in possession of the premises until their application is determined.

3.3 The term “Lease” includes a fee farm grant (section 3). Note: The creation of fee farm grants at law and in equity is prohibited by section 12 of the Land and Conveyancing Law Reform Act 2009. Existing fee farm grants continue to have full force and effect.

4. Restriction on the right

4.1 Section 4 provided that the Act would not bind a Minister of Government, the Commissioners of Public Works in Ireland or the Irish Land Commission. Section 16(2), in paragraphs (d) and (e), excluded leases made by the Commissioners of Irish Lights or by harbour authorities. These provisions were amended by section 70 of the 1980 Act, so that such bodies are now bound by the Act, except where the body is satisfied that such acquisition of the fee simple would not be in the public interest.

Similar provisions apply to bodies such as Waterways Ireland, established by the British-Irish Agreement Act 1999 as amended by the British-Irish Agreement (Amendment) Act 2005.

The Landlord & Tenant (Ground Rents) Act 2005 added IDA Ireland, SFADCO and Údarás na Gaeltachta to section 4 and removed the Irish Land Commission as it no longer exists.

4.2 Section 16 of the Act (as amended by section 8 of the 1984 Act) also restricts the right to acquire the fee simple:

(i) where the tenant has been declared not to be entitled to a reversionary lease under the Landlord and Tenant (Reversionary Leases), Act, 1958 ;

(ii) in certain circumstances where a building is divided into not less than 4 flats; (this restriction should not be confused with the exclusion of flats from the jurisdiction of the Land Registry under section 19 and the definition of “dwelling” in section 3);

(iii) in respect of certain business leases.

4.3 The Act does not apply to a Shared Ownership Lease: Housing (Miscellaneous Provisions) Act 1992 section 2(3)

5. Expired Leases

5.1 A person holding under an expired lease may be entitled:

(i) As a yearly tenant arising by operation of law or by inference, where rent has been paid to and accepted by the landlord after the expiry of the lease, if the conditions of section 15 of the Act are satisfied;

(ii) Under section 13 of the Act, where the application was made within 12 months of the commencement of the Act, (on 1 August, 1978), or

(iii) (Under section 3(2)(c) of the 1967 Act, (as revived by section 73 of the 1980 Act), where the lease was a building lease or proprietary lease as defined by sections 4 & 7 of the Landlord & Tenant (Reversionary Leases) Act, 1958.

6. Statutory Tenancy

6.1 A statutory tenancy, referred to in section 15, is a tenancy that arises by virtue of the Rent Restriction Acts, 1946 to 1960, where a tenant of a controlled premises holds over the property on the termination of the contract of tenancy. The Rent Restriction Acts were repealed but largely re-enacted by the Housing (Private Rented Dwellings) Act, 1982. It would appear that a statutory tenancy could not subsequently arise. Note that for section 15 to apply the rent reserved by the lease must have been a yearly one.

The statutory tenancy should be evidenced by:

       1. Agreement between the parties. [section 11(1) of the 1982 Act]

       2. Court Order setting out the terms. [sections 11and 12 of the 1982 Act]

       3. Court Order declaring that any tenancy otherwise than by virtue of the 1946 Act or the 1960 Act has terminated [Section 39 of the 1946 Act and section 32 of the 1960 Act].

       4. Other evidence of the retaining of possession by the tenant after the contract of tenancy has terminated and the continued payment of the yearly rent.

In the case of 4, it will be necessary to establish that the property is a ‘controlled premises’ within the meaning of the 1946 Act or a ‘controlled dwelling’ within the meaning of the 1960 Act (Note the various exclusions), and that the applicant is a ‘statutory tenant’ [section 2 in each Act]

In the case also of 4 (and possibly 3), note also that the statutory tenancy is subject to the terms and conditions of the original contract of tenancy. [Section 40 of the 1946 Act and section 32 of the 1960 Act] These may be relevant to section 15(1)(e) of the 1978 Act.

In order to be satisfied that the applicant qualifies under the 1978 Act, we will require an affidavit sworn by him disclosing the facts relied on to show that all the provisions of section 15 of the 1978 act are complied with by the tenancy.

7. Intermediate interests

7.1 The right to purchase exists only to enlarge the interest held by lessee into a fee simple interest. Where the lessee already has the fee simple, there is no right under the Act to acquire intermediate interests.

[see Metropolitan Properties Ltd. V John O’Brien & The Commissioners of Public Works [1995] 2 ILRM 383]

8. Housing Authority Tenants

8.1 Tenants of Housing Authorities acquiring the fee simple do so by means of a transfer order from the Housing Authority, under section 90 of the Housing Act, 1966 (section 26(7) of the Act). They may not apply to the Authority for a vesting certificate.

9. Vesting by the Authority

9.1 The Authority is empowered, by section 22(1) of the Act, to issue a certificate vesting the fee simple and any intermediate interests, free from encumbrances, in an applicant.

9.2 This power is limited to cases “where the permanent buildings are constructed for use wholly or principally as a dwelling and are so used” (section 19). The dwelling must therefore be habitable. “‘Dwelling’ does not include a separate and self-contained flat in premises divided into two or more such flats”(section 3).

9.3 The Act provides two separate circumstances where the Authority may issue such a vesting certificate:

  • where an application is made with the consent of every person who would be a necessary party to the conveyance to him of the fee simple free from encumbrances (section 20 and section 22(1)(a));
  • where an application is made without the consent of such persons (section 21and section 22(1)(b)).

9.4 The two categories of cases are distinguished colloquially as “Consent Cases” and “Arbitration Cases”. The requirements of the Registry before issuing a vesting certificate vary, (pursuant to paragraphs (a) and (b) of section 22), in accordance with whether the application is a Consent Case or an Arbitration Case.

9.5 The powers and duties of the Authority may be exercised “by such of its officers as the Minister may authorise in that behalf” (section 25).

9.6 Separate vesting certificates must issue for each dwelling even if they are held under a single lease.

9.7 Where part of the premises the subject of the lease is not subsidiary and ancillary to the dwelling, that portion should be excluded from the application. The remaining part may comprise a partly-built lease under the provisions of section 14 of the Act. The rent will have to be apportioned between the two parts.

9.8 Where part of the land is held under a separate lease, a Vesting Certificate cannot issue re this portion even where it is subsidiary and ancillary to the dwellinghouse.

10. Ground Rents Arbitrator

10.1 One or more officers of the Land Registry are appointed as Arbitrators pursuant to section 25 of the Act to carry out the Arbitration powers and duties of the Registrar.

10.2 Such Arbitrators have the powers and duties given to the County Registrars in relation to arbitrations under the 1967 Act (section 21(4)). These include power to determine:

       1. the person (if any) entitled to acquire the fee simple;

       2. the purchase price;

       3. the persons entitled to the purchase money and their shares therein;

       4. and to take evidence on oath.

10.3 Decisions of the Arbitrators are appellable to Court. See section 21(5) of the Act and Order 51 Rule 3 of the Circuit Court Rules 2001 [SI 501 of 2001]

11. Regulations and Forms

11.1 The operation of the scheme is regulated by the Landlord and Tenant (Ground Rents) (No. 2) Act, 1978, Regulations, 1978, (S.I. No. 219 of 1978) (hereinafter referred to as “the Regulations”).

11.2 The scheme is also affected to some extent by the Landlord and Tenant (Ground Rents) Act, 1967, (Forms) Regulations, 1967, (S.I. No. 43 of 1967) (e.g., in relation to the form of notice of an application to have rent apportioned, – GR Form 5 therein).

11.3 These regulations specify the forms to be used for applications, notices and vesting certificates.

11.4 By convention a “Consent” vesting certificate, (GR Form E of the Regulations), is issued on paper with a green margin and “Arbitration” vesting certificates, (GR Form F of the Regulations), with a red margin.

11.5 The standard queries set out in Appendix 4 hereto are guidelines only, and may be modified to suit the circumstances of a particular case. Problems not covered by these templates will be raised by way of free-form query.

12. Documents of Title

12.1 A copy of the lease under which the applicant holds and a copy of the most recent assignment or assent relating to that interest should be lodged with the application, unless these are not forthcoming, in which case the best evidence available of the contents of these documents will generally be accepted. (These documents are required in Consent cases to ensure that the correct details are given in the Vesting Certificate, and in Arbitration cases to assist the Arbitrator in determining if the applicant is entitled under the Act).

12.2 Documents showing the landlord’s title are not required in any case other than in support of a claim by the landlord to a share of the Purchase Money or as evidence of entitlement to consent.

12.3 Any original documents of title lodged will be returned to the applicant. Copies only will be retained by Ground Rents Section.

13. Searches by the Ground Rents Section

13.1 Where any interest in the property is disclosed to be registered, the Ground Rents Section will inspect the relevant folio. This is done in Consent cases to check that the consents of all the necessary consenting parties, including the owners of registered charges, have been obtained, and in Arbitration cases to obtain names and addresses of Notice Parties.

13.2 Ground Rents Section will requisition a search by the Land Registry’s Mapping Branch in Dublin and Cork cases, and check the Names Index in other counties, to see if the property is registered, and note any registration details. If Mapping Branch is unable to say whether a property is registered or not, processing of the application will proceed on the basis that the property will be described without reference to a folio number.

14. Description of property on Vesting Certificates

14.1 Where it is known that an interest in the property is registered, the description in Part I of the Schedule to the Vesting Certificate will include reference to the relevant folio. (Where, however, such property is described on a vesting certificate without reference to such folio, the vesting certificate is, nevertheless, sufficient to vest the property, including such registered interest, so long as the vesting certificate identifies the property in some sufficient description).

15. Personal Representatives

15.1 Where an application discloses that an applicant holds as personal representative of a deceased person, he will be so described on the Vesting Certificate.

15.2 It is considered, nevertheless, that a Vesting Certificate without such description will vest the fee simple in the applicant in the same capacity as he held the lease or tenancy, i.e., if he held the tenancy as personal representative, he will so hold the fee simple under the Vesting Certificate. However, a Vesting Certificate returned to the Ground Rents Section, where appropriate, for such amendment may be so amended.

16. Tenants in Common and Joint Tenants

16.1 Where two or more persons apply, Ground Rents Section will ascertain whether they hold as joint tenants or as tenants in common, and, if as tenants in common, in what shares they hold, by inspecting the relevant copy assignment or copy Folio. If the position is not clear from such inspection, a query may be issued to clarify the matter.

16.2 The shares of tenants in common should be specified, where possible, in the Vesting Certificate.

17. Limited Owners

17.1 Where the lease or tenancy is held by a life tenant or other limited owner, the fee simple will be vested on similar limitations. The text of the Vesting Certificate will be modified to contain some such words as the following:

” . . . vests the fee simple in the said property in the applicant for life with remainder to X free from encumbrances and any intermediate interests.”

18. Registration of Vesting Certificates

18.1 On issue, the Vesting Certificate will be accompanied by a notice recommending the registration of the title in the Land Registry or the registration of the Vesting Certificate in the Registry of Deeds, as appropriate. For further information regarding registration of Vesting Certificates in the Land Registry see:

  • Practice Direction – Vesting Certificates
  • Practice Direction – First Registration and other Examiners Cases (section.5)
  • Applications in Person – Legal Office Notice No. 5/2010

19. Modification and cancellation of Vesting Certificates

19.1 Where a Vesting Certificate is shown to be incorrect, it may be modified appropriately and re-signed by an authorised officer. Alternatively, it may be cancelled by the Ground Rents Section and a correct Vesting Certificate issued in lieu.

19.2 Where it transpires that the consent to the issue of a Consent Vesting Certificate was not obtained from some person who would be a necessary party to a conveyance of the fee simple free from incumbrances, such certificate may be cancelled by the Ground Rents Section, or, if such consent was subsequently obtained, it may be suitably amended and re-signed by an authorised officer.

19.3 On an application for first registration of such Vesting Certificates an Examiner may in his/her discretion take whatever action s/he considers appropriate after making make any relevant inquiries. In all cases the Ground Rents section should be notified of any necessary amendments to be made to their records.

20. Certified copies of Lost Vesting Certificates

20.1 Where an applicant provides evidence on affidavit that a Vesting Certificate has been lost or destroyed, the Ground Rents Section may issue a certified copy of the original Vesting Certificate.

20.2 Where a duplicate of the original Vesting Certificate is filed in the Land Registry, Ground Rents Section will issue a certified photocopy thereof as a certified copy of the original.

20.3 Where a duplicate of the original Vesting Certificate is not filed in the Land Registry, (as was the original practice), Ground Rents Section will prepare a replacement Vesting Certificate as close as possible to the original and bearing the same date as the original, or as near to that date as can be ascertained from the file of the case, but signed by a current authorised officer, and issue a certified copy of same.

20.4 Any such certified copy or duplicate will be accepted for all relevant purposes in the Land Registry and in the Registry of Deeds.

21. Practices particular to Consent Cases

21.1 An applicant for a consent vesting certificate must provide:

       1. an application in GR Form A of the Regulations signed by the applicant;

       2. a consent (GR Form C of the Regulations) signed by every person “who would be a necessary party to the conveyance to him of the fee simple free from incumbrances” (section 20 of the Act and the              Regulations);

       3. A copy of the lease;

       4. a copy of the deed or assent by which the applicant acquired the tenancy;

       5. the appropriate fee.

21.2 Initially the Land Registry did not require lodgement of the leasehold title documents ((iii) and (iv) in the above list) and confined its examination of consent cases to checking:

       1. that the GR Form A and GR Form C were correctly completed;

       2. that the registered owners, and any incumbrancers noted on Folios disclosed in the application, were consenting parties, or an explanation given as to why their consents were not required;                              (“Incumbrance” includes a charge, but does not include a right of way or other easement);

       3. that any party who has lodged the relevant Land Certificate, and has claimed a lien on it, is a consenting party;

       4. where the term indicated that the lease was probably a sublease, that there was a consent by both an intermediate and a superior landlord.

21.3 The requirement for production of the leasehold title documents referred to arose from the experience of the section in administering the scheme, since it transpired that in many cases the wrong person had applied, or the wrong lease details had been given. The said documents are now required for the purpose of ensuring that the correct details are provided.

21.4 Where searches by Ground Rents Section (see chapter 13 above) disclose that an interest in the property is registered, and the registered owner is not a consenting party, the section should raise the matter with the applicant, unless sufficient reason for omission of the consent has already been given or is within the knowledge of the section. It does not necessarily follow that a consent must be acquired from the registered owner, since, in some cases, the registered owner will have transferred his interest to another, (or the interest will have devolved on the death of the registered owner to another), which other then becomes the “necessary party to the conveyance”, even though his registration has not been effected.

21.5 In some cases the registered owner of a Folio has changed since the consent was given. Consent of the new registered owner is not required, so long as consents have been given by the correct parties as at the date of the consent.

21.6 The Ground Rents section will not inspect the Folio to confirm that the lease is registered as a burden thereon.

21.7 If the consent of all the known parties is forthcoming, the Vesting Certificate (in GR Form E of the Regulations) will be issued to the applicant. On issue, the Vesting Certificate will be accompanied by a notice recommending the registration of the title in the Land Registry or the registration of the Vesting Certificate in the Registry of Deeds, as appropriate. For the latter purpose, a duplicate Vesting Certificate will be issued for lodgement in the Registry of Deeds.

[For further information regarding registration of Vesting Certificates in the Land Registry, see Practice Direction – Vesting Certificates, Practice Direction – First Registration and other Examiners Cases (Section 5) & Applications in Person – Legal Office Notice No. 5/2010].

22. Authorisation File

22.1 In many cases, the owner of an interest in land authorises another person to sign the consent GR Form C on his/her/its behalf. Ground Rents Section keeps a file of such authorisations to which it refers in suitable cases. A consent signed by the authorised person is accepted as sufficient.

23. Conversion of Consent Case to Arbitration

23.1 Where it transpires that an applicant under the Consent procedure has failed to provide the consent of a necessary consenting party, the application may be converted to an Arbitration case on lodgement of an application in GR Form B of the Regulations by the applicant and payment of the Arbitration fee.

23.2 Where it appears to the Arbitrator, in such a case, that the applicant is entitled under the Act and that no share of the Purchase Money is payable to any party other than those whose consent has been provided, he may make an award confirming the applicant’s entitlement without fixing the Purchase Price and issue a Vesting Certificate accordingly.

23.3 The Arbitrator, in such a case, may fix the Purchase Price at such figure as appears reasonable to him having regard to the amount agreed between the applicant and the consenting parties together with the probable entitlement of the parties whose consent is missing and may issue the Vesting Certificate on lodgement in the Land Registry of the portion of the Purchase Money relating to the share of such missing parties only.

24. Arbitration Cases

24.1 Application for a vesting certificate without the consent of all the necessary parties is made in GR Form B of the Regulations. If the immediate landlord is known, the GR Form B must be accompanied by a copy of a notice in GR Form D of the Regulations served on the landlord, and evidence of its service (usually a post office docket showing postage of a registered letter). It is sufficient for the GR Form D to be served on the person to whom the rent is paid (section 21(1) of the Act, section 63 of the Landlord and Tenant Act, 1931). If the immediate landlord is not known, however, the GR Form D can’t be served, and the GR Form B should contain a statement to this effect.

24.2 Where an applicant has obtained the consent in GR Form C of some of the necessary consenting parties, including the party to whom he pays the rent, he may, in making an application under the Arbitration procedure, lodge such consents in lieu of copy of a notice in GR Form D.

24.3 The proof required for issue of a vesting certificate in an Arbitration Case is that: (i) “the Registrar as arbitrator or the Court on appeal is satisfied that the applicant under section 21 is entitled to acquire the fee simple” (section 22(1)(b)), and (ii) that the buildings “are constructed for use wholly or principally as a dwelling and are so used” (section 19).

24.4 An applicant can satisfy the Arbitrator of this by showing:

       1. that he holds the land under a lease (section 9) or a yearly tenancy (section 15);

       2. that there are permanent buildings on the land (section 9(1)(a),section 15(1)(a))and that they are not an improvement, which is defined in subsection (2) of section 9 as any addition to or alteration of               buildings but excludes an alteration or reconstruction so that the buildings lose their original identity. [In this regard see the judgement of Mr. Justice Michael Peart on 31st May 2005 in the case of                   A.OGorman & co. Ltd V JES Holdings Ltd. H.C Record Number. 2001 no. 32A.]

       3. that the portion of the land not covered by those buildings is subsidiary and ancillary to them (section 9(1)(a), section 15(1)(a));

       4. that the buildings “are constructed for use wholly or principally as a dwelling and are so used” (section 19);

       5. that the buildings were not erected in contravention of a covenant in the lease (section 9(1)(c)), or that the Arbitrator should declare the person to be a qualifying person notwithstanding such breach           of covenant by virtue of section 9(5) .  [In this regard see the judgement of Mr. Justice Michael Peart on 31st May 2005 in the case of A.OGorman & co. Ltd V JES Holdings Ltd. H.C Record Number. 2001           no. 32A];

       6. that the lease satisfies one of the conditions of section 10, (as amended), or the tenancy satisfies all the conditions of section 15, or that the lease qualifies under section 73 of the 1980 Act; and

       7. that the tenancy has devolved to the applicant.

24.5 A copy of the lease, together with a copy of the most recent assignment or assent, where they support the statements in the application, may be accepted as sufficient proof of items (i) and (vii) in the preceding paragraph.

24.6 The Arbitrator may rely on assertions as to items (ii), (iii), (iv) and (v) by the applicant in the application form unless the contrary appears.

24.7 In many cases it will appear from the face of the lease itself that one of the conditions of section 10 are satisfied (e.g., a covenant by the lessee to build a house on the land, or a fine for more than 15 times the rent in the lease). If not, the applicant is required to state which condition he claims is satisfied and to provide proof of such satisfaction.

24.8 Usually an applicant claiming to comply with section 15 is required to provide an affidavit showing the facts relied upon to comply with all the conditions of the section.

25. Processing Arbitration Cases

25.1 As soon as is practical after lodgement of an application, notice will be served by Ground Rents Section on any landlords disclosed in the application, unless the consent of such landlords, or waiver by them of notices, is submitted. This notice, in addition to giving the landlord notice of the application, will, also, request him to state the names and addresses of any persons to whom he pays a superior rent.

25.2 Ground Rents Section will consult Thom’s Directory and note, for the Arbitrator’s attention, any matter of potential conflict with the applicant’s statements. If the premises is described as a business premises or as flats, a query in standard form may be issued to the applicant. (See “Business Query” and “Flats Query” in Appendix 4 hereto).

25.3 Following the lapse of the time period specified in such notice, the case will be passed to the Arbitrator for his attention.

25.4 On examination of the case, the Arbitrator will make an award or issue queries to the applicant. If he finds that the applicant is entitled and that sufficient evidence is available to enable the purchase price to be fixed, he will make an award to that effect. If the landlord, at this stage, has responded and lodged evidence of his title, the Arbitrator may enter a note on the file as to the entitlement of the landlords to shares in the purchase money to facilitate the making of an award in respect of the purchase money when a claim is lodged.

25.5 If it appears that an applicant wishes to have the ground rent apportioned between the premises and other property, the Arbitrator may require him to serve notice of the proposed apportionment (in Form 5 of the 1967 Regulations) on his landlord and on the owners of all or some of the other properties demised by the lease in accordance with section 12 of the 1967 Act.

25.6 When the Arbitrator makes an award declaring that the applicant is entitled to purchase the fee simple and fixing the Purchase Price, notice of this will be served on the applicant and on the immediate and superior landlords, if known. The parties are given a time limit within which the Award can be appealed to Court. If no such appeal is made within the notice period, the applicant can then lodge in the Land Registry the amount of Purchase Money fixed by the Arbitrator. He must also lodge a receipt showing payment of the Ground Rent up to the next gale day following the date of the award or lodge arrears of rent from the last receipted payment, up to a maximum of 6 years’ arrears of rent.

25.7 The Ground Rents Section will then issue a Vesting Certificate in GR Form F of the Regulations signed by the Arbitrator, accompanied by a notice recommending registration of the title in the Land Registry or the registration of the Vesting Certificate in the Registry of Deeds, as appropriate. For the latter purpose, a duplicate Vesting Certificate will be issued for lodgement in the Registry of Deeds. The section will also serve notice of the issue of the Vesting Certificate and lodgement of the Purchase Money on any landlords shown on the file as having a possible interest in the Purchase Money.

26. Business Premises

26.1 The Registrar has power to issue a vesting certificate only in respect of cases where the permanent buildings on the land “are constructed for use wholly or principally as a dwelling and are so used”. Where there is a doubt in this matter, the Arbitrator will decline to make an award in an applicant’s favour. Such applicants can apply instead to the County Registrar, who has power to arbitrate all applications to purchase the fee simple under the Ground Rents Acts (section 17 of the 1967 Act, section 8 of the Act). Alternatively, the applicant can appeal to the Court against the Land Registry decision.

27. Subsidiary and Ancillary

27.1 Where the land is less than one acre in area, the applicant’s assertion that the land in the lease is subsidiary and ancillary to the buildings is to be accepted, unless the contrary appears on the face of the documents lodged or the issue is raised in an objection.

27.2 If the land is over an acre in area, an applicant must show that it is subsidiary and ancillary. This is done by describing the use to which the land is put. The Arbitrator will have regard to the discussion of the terms “subsidiary and ancillary” in the case of Killeen v. Talbot de Malahide (1951 Irish Jurist Repts, p. 19) and similar cases in making his decision. See also the judgement of Mr. Justice Michael Peart on 31st May 2005 in the case of A.OGorman & Co. Ltd V JES Holdings Ltd. H.C Record Number. 2001 no. 32A.

28. Building divided into flats

28.1 Since “dwelling” does not include a separate and self-contained flat in premises divided into two or more such flats” (section 3 of the Act), the Arbitrator will refuse to issue a vesting certificate in respect of any such premises. (Such premises can be arbitrated by the County Registrar).

28.2 Section 16(2)(a) excludes from the Act premises divided into not less than 4 flats, where certain provisions in relation to review of the rent apply.

29. Fixing the Purchase Price

29.1 Where the Purchase Price of the ground rent is not agreed between an applicant and the landlords, the amount thereof will be fixed by the Arbitrator.

29.2 The fixing of the Purchase Price was regulated originally by section 17of the Act. However, some aspects of the provisions of that section were found to be unconstitutional in the case of Gilsenan v. Foundary House Investments Limited and Rathmines Properties Limited (Supreme Court Decision 14 November 1980). The fixing of the purchase price is now controlled by section 7 of the 1984 Act.

29.3 Section 7(5) of the 1984 Act controls the fixing of the purchase price in most cases, i.e., where:

       1. more than 15 years remain on the lease, or the tenancy is yearly, and

       2. the land does not exceed one acre in extent.

In such cases, the Purchase Price can’t exceed an amount which, if invested in the most recent long-term Government Stock matching the criterion specified in the subsection, “would produce annually in gross interest an amount equal to the amount of the rent” under the lease or tenancy. This amount is calculated by dividing the price of the Government stock, as quoted on the stock-exchange at closing on the previous evening, by the interest rate on the stock and multiplying the rent by the resulting figure, colloquially referred to as the “multiplier”.

29.4 Where the lease has expired, and the property has not “by operation of law” on the expiry of the lease become a yearly tenancy, subsection 4 applies instead of subsection 5. The amount of the purchase price is thereby fixed at one eighth of the market value of the premises if sold in fee simple with vacant possession.

29.5 Where less than 15 years remain on the lease, the purchase price is fixed in accordance with section 7(8) of the 1984 Act. The formula specified in the section is as follows: [15 N][ V – MR] + MR [ 15][8] where P = Purchase-price, r = rent, v = market-value, n = unexpired-term-of-lease, m = multiplier.

29.6 Where the land exceeds one acre in area, the Arbitrator fixes the purchase price in accordance with the provisions of section 7(3) of the 1984 Act.

29.7 The Arbitrator may require the applicant to obtain an opinion of the market value from a reputable auctioneer or valuer and takes this opinion into consideration in deciding what sum is to be taken as the market value of the premises. He may also send a request to the Commissioner of Valuation for “a valuation, estimate or statement in respect of any particular matter relevant to the determination of the purchase price” (section 20(1) of the 1967 Act).

29.8 Where the annual ground rent is less than €1.27 and the Purchase Price is determined in accordance with section 7(5) of the 1984 Act, the Arbitrator may fix the Purchase Price at Nil.

30. Purchase Money Cases

30.1 The Land Registry will serve notice of issue of an Arbitration vesting certificate and lodgement of the purchase money on any landlords shown on the file to have a possible interest in the purchase money.

30.2 On proof of their entitlement, the Land Registry pays out the Purchase Money to the landlords. A claim may be made in the attached Claim Form which provides details as to the landlords title and information to assist in calculating the share of the purchase money due.

30.3 Title of the landlords may be proved by lodging copies of the landlord’s title deeds, which are examined by the Arbitrator. Alternatively, the Arbitrator may accept a certificate by a practising solicitor or barrister, in GR Form G of the Regulations, in lieu of title deeds. Such information regarding titles may be held in files known as GRT files.

30.4 The immediate landlord should also lodge the landlord’s counterpart of the applicant’s lease, if any, or give satisfactory explanation of its absence. The Arbitrator may, however, dispense with production thereof where it seems reasonable to do so.

30.5 Where the Arbitrator is satisfied that a claimant is entitled to the entire or a share of the Purchase Money, he will make an award to that effect, whereupon the amount so awarded will be paid out to the claimant.

30.6 Where there are two or more landlords, the Arbitrator may make an award determining the share of each landlord. The shares may be determined by agreement between the landlords or in proportion to the profit rent of each landlord, if known or on whatever other basis as the Arbitrator “thinks just” (section 22(6) of the Act).

30.7 In many cases strict proofs of the landlords’ titles are not possible or would involve expense out of proportion to the amount of the Purchase Money. In such cases the Arbitrator will make whatever determination seems reasonable. Where more information comes to hand on further cases, the Arbitrator may make such adjustments as seem reasonable in respect of the original cases in determining the shares of the Purchase Money in the later cases.

31. Awards Register

31.1 A register is maintained of all awards made by the Arbitrators in pursuance of the scheme. The register can be inspected on payment of the required fee.

John Deeney Deputy Registrar 01 December 2009

Appendices

Appendix 1

Guidelines & Forms

Additional Information on Consent

There are two Forms to be completed when applying for a Vesting Certificate under Consent procedure, those are GR Form A and GR Form C .

  • GR Form A: is the application Form to be completed and signed by the owner/tenant of the premises. If you hold the premises jointly with a spouse or other relatives, GR Form A should also include their name/s and signature/s.
  • GR Form C: is the Consent Form to be completed by your Landlord/s when you have paid to him/them the purchase price for the freehold title.

NOTE: If there is more than one Landlord involved, it will be necessary to obtain a completed Consent Form from each Landlord. If you are unable to obtain a completed Consent Form from one or more of the Landlords you may buy out your ground rents through Arbitration procedure. Arbitration procedure requires that you lodge the purchase price for the Freehold Title with this office rather than paying it directly to the Landlord.

The onus of obtaining all of the necessary Consents rests with you as the applicant.

Your consent should consist of the following items:

       1. Completed GR Form A

       2. Completed GR Form/s C

       3. A photocopy of your LEASE

       4. A photocopy of your ASSIGNMENT (This document is required if you not the original owner of the house; it is evidence of your ownership.)

       5. Application fee of €30 if you reside at the premises or €65 otherwise.

(Payment by cheque, postal order, bank draft or cash will be accepted; cheques, etc, should be made payable to “The Property Registration Authority”.)

NOTE: Items 3 and 4 are two of the title deeds to your property. If you have a mortgage, you will find that copies of the deeds are available from your Bank or Building Society. If your mortgage has been repaid in full, the deeds may be held by your solicitor.

Additional information on Arbitration Application There are two Forms to be completed when applying for a Vesting Certificate under Arbitration procedure, those are GR Form B and GR Form D.

  • GR Form B is the application Form to be completed and signed by the owner/tenant of the premises. If you hold the premises jointly with a spouse or other relatives, GR Form B should also include their name/s and signature/s.
  • GR Form D is the Notice of your intention to buy out the ground rents under Arbitration procedure. GR Form D should be sent BY REGISTERED POST to your Landlord (or his Agent/Solicitor).

It is important that you retain a PHOTOCOPY of your completed and signed GR Form D AND a receipt for registered post as these items will form part of your application.

You may hand the completed GR Form D to your Landlord instead of sending it by registered post; but if you do so, you must ask him/them for a letter acknowledging receipt of the GR Form D.

21 days after you have served GR Form D, you may lodge your application which should include the following items:

       1. Completed and signed GR Form B

       2. Photocopy of completed GR Form D

       3. Receipt for registered post, or letter from your Landlord acknowledging receipt of same

       4. Your latest ground rent receipt

       5. A photocopy of your LEASE

       6. A photocopy of your ASSIGNMENT (This document is required if you are not the original owner of the property; it is evidence of your ownership)

       7. €105 application fee if you reside at the premises or €195 otherwise

(Payment by cheque, postal order, bank draft or cash will be accepted; cheques, etc, should be made payable to “The Property Registration Authority”.)

NOTE: Items 5 and 6 are two of the title deeds to your property. If you have a mortgage you will find that copies of the deeds are available from your Bank or Building Society. If your mortgage has been repaid in full, the deeds may be held by your solicitor.

Landlord and Tenant (Ground Rents) (No.2) Act, 1978

Claims for (a share of) Purchase Money The payment of Purchase Money to claimants can be expedited by lodgement of the claim at the earliest date, i.e., before the purchase money is fixed or vesting certificate issued, providing, at the same time, all the information needed for calculation of the claimants share, lodging certificate in GR Form G by a solicitor or barrister, (or, alternatively, a copy of the claimants title deeds if not already lodged), and lodging the landlords counterpart lease, where relevant.

The following information is needed to determine the claimants entitlement and share:

       1. Claimants name and address.

       2. The premises in respect of which the claim arises.

       3. The Land Registry reference number (found on the form notifying you of the application for a vesting certificate, and formatted as follows: GRXXXXX/XX or XXGRXXXXX).

       4. The interest held by the claimant, (e.g., fee simple, or interest created by fee farm grant, or leasehold interest).

       5. The date, parties and term of such fee farm grant or lease (if any).

       6. The amount of the rent payable by the claimant under such fee farm grant or lease.

       7. The total annual rent which the claimant was entitled to collect from the entire property held by him under such fee farm grant or lease.

       8. The name(s) and address(es) of the parties to whom such superior rent is or was payable.

       9. Details of any agreement between the claimant and other superior owners concerning the sharing of the Purchase Money

       10. Any necessary information regarding intermediate interests to enable calculation of the Claimants share.

Useful links:

  • Ground Rents Purchase Scheme – Explanatory Leaflet
  • Applications in Person – Legal Office Notice No. 5/2010
  • GR Form A – Application for Vesting by Consent
  • GR Form B – Application for Vesting on Arbitration
  • GR Form C – Consent
  • GR Form D – Notice of Intention
  • GR Form G -Claim for the Purchase Money
  • Claim for a share of Purchase Money
  • Form E – Consent Vesting Certificate
  • GR Form F – Arbitration Vesting Certificate
  • GR Form No.5 – Notice of intention to have rent apportioned (section 12)

Appendix 2

(Note: The Bracketed Headings are not part of the Act and are added as an aid to applicants in reading the Act.)

Section 10 conditions (as amended by section 71 of the Landlord and Tenant (Amendment) Act, 1980).

The following are alternative conditions one of which must also be complied with in a case to which section 9 relates:

1. (Buildings erected by the Tenant)

that the permanent buildings were erected by the person who at the time of their erection was entitled to the lessee’s interest under the lease or were erected in pursuance of an agreement for the grant of the lease upon the erection of the permanent buildings;

2. (Rent less than Rateable Valuation & house not built by landlord)

that the lease is for a term of not less than fifty years and the yearly amount of the rent or the greatest rent reserved thereunder (whether redeemed at any time or not) is of an amount that is less than the amount of the rateable valuation of the property at the date of service under section 4 of the Act of 1967 of notice of intention to acquire the fee simple or the date of an application under Part III of this Act, as the case may be, and that the permanent buildings on the land demised by the lease were not erected by the lessor or any superior lessor or any of their predecessors in title:  provided that it shall be presumed, until the contrary is proved, that the buildings were not so erected;

3. (Lease to the Nominee of a Builder who holds a Building Lease)

that the lease was granted by a lessor to the nominee of a person (in this paragraph referred to as the builder) to whom land was demised for the purpose of erecting buildings thereon in pursuance of an agreement between the lessor and the builder that the builder having contracted to sell the buildings would surrender his lease in consideration of the lessor granting new leases to the builder’s nominees;

4. (Lease to the Nominee of a Builder)

that the lease was granted by a lessor to the nominee of a person (in this paragraph referred to as the builder) in pursuance of an agreement between the lessor and the builder that the lessor, upon the erection of the buildings by the builder, would grant leases to the builder’s nominees;

5. (Lease to the tenant of a previous, expired lease)

that the lease was granted, either at the time of the expiration or surrender of a previous lease or subsequent to such expiration or surrender – (a) at a rent less than the rateable valuation of the property at the date of the grant of the lease, or (b) to the person entitled to the lessee’s interest under the previous lease, provided that the previous lease would have been a lease to which this Part applied had this Act then been in force and provided that it shall be presumed, until the contrary is proved, that the person to whom the lease was granted was so entitled;

6. (Reversionary Lease: i.e., a lease to take effect on the expiry of an existing lease)

that the lease is a reversionary lease granted on or after the 31st day of March, 1931, to a person entitled thereto under Part V of the Act of 1931 or the Act of 1958, whether granted on terms settled by the Court or negotiated between the parties;

7. (Lease in consideration of a sum of money or expenditure on the premises)

that the lease, being a lease for a term of not less than fifty years, was made –

(a) partly in consideration of the payment of a sum of money (other than rent) by the lessee to the lessor at or immediately before the grant of the lease and for this purpose, any money paid in redemption of any part of the rent reserved by the lease (whether the money was paid in pursuance of a covenant in the lease or in pursuance of an agreement made between the lessee and the lessor during the currency of the lease) shall be deemed to be part of the consideration, or

(b) partly in consideration of the expenditure (otherwise than on decoration) of a sum of money by the lessee on the premises demised by the lease, or

(c) partly in consideration of both that payment and that expenditure.

where the sum so paid or expended or the total of those sums was not less than fifteen times the yearly amount of the rent or the greatest rent reserved by the lease, whichever is the less.

Notes:

Expired Lease:

Section 73 of the 1980 Act extends the right to persons entitled under section 3 of the 1967 Act, including persons who hold under a building or proprietary lease that has expired.

Lease in consideration of improvement work on the premises:

Section 12 of the Act enables applicants to qualify under condition 7 where the amount to be expended on (specified) work is not specified in the lease, but the actual amount expended on such work was not less than fifteen times the rent.

Some Leases of less than 50 years to qualify under condition 7:

Section 72 of the 1980 Act enables some leases of less than 50 years to qualify under condition 7, (i.e., subleases under a qualifying lease, where the term of the sublease is not less than 20 years or 2/3 of the term of the superior lease and expires not more than 15 years before the superior lease).

Appendix 3 – Ground Rents Fees

A Synopsis of Ground Rents (Fees) Order, 1984 S.I. No. 194 of 1984

Type of Application

Fee €

1

Application for Vesting Certificate with Consent (GR Form A)

– in occupation of dwelling house

30.00

– otherwise

65.00

2

Application for Vesting Certificate by Arbitration (GR Form B)

– in occupation of dwelling house

105.00

– otherwise

195.00

3

Inspection of a Register

0.60

Copy of a Register

3.00

 

Links to relevant sections of Acts; Fees Order:

  • Section 23 of the Landlord and Tenant (GroundRents)(No. 2) Act, 1978
  • Section 2 of the Landlord and Tenant (Ground Rents) (Amendment) Act, 1983
  • Section 3 of the Landlord and Tenant (Ground Rents) (Amendment) Act, 1984
  • Landlord and Tenant (Ground Rents) (No. 2) Act, 1978 (Fees)Order, 1984

Appendix 4

Standard Queries

(I) Miscellaneous Applicant Name and Address: Date: Re: Landlord and Tenant (Ground Rents) (No.2) Act, 1978 Our Reference: Applicant(s): Address: Premises: Dear Sir/Madam, With reference to the above application for a Vesting Certificate, the application is returned herewith. Please rectify the error/omission specified below and return the application to us.

(Optional Items:)

1. Third party cheques unacceptable.

2. GR Form A incomplete at _______.

3. GR Form B incomplete at _______.

4. GR Form B not signed.

5. GR Form B – first and/or second schedule incomplete.

6. GR Form C incomplete at _______.

7. Cheque out of date.

8. Non cash payments should be made payable to Land Registry.

9. GR Form C – consent of every necessary party may not have been obtained, please see enclosed letter.

10. Please lodge copy assent to _______.

11. Please lodge copy of Assignments to applicant(s).

12. Please lodge copy of Lease.

13. Please lodge copy of Probate/Letters of Administration.

14. GR Form D incomplete at _______.

15. GR Form D not dated.

16. GR Form D – Postal receipt.

17. Fees incorrect. Amount payable ______.

18. Please lodge GR Form A.

19. Please lodge GR Form B.

20. Please lodge GR Form C.

21. Please lodge GR Form D.

22. GR Form A – applicant(s) signature on form required.

Yours faithfully, __________________ Ground Rents Section

(II) Tenants in Common

The applicants are shown to be tenants in common, but the shares in which they hold the property are not shown. Do they hold the property in equal shares If not, in what shares do they hold it

(III) Which condition is satisfied (Select appropriate paragraphs:)

The documents lodged do not establish that you are entitled to purchase the fee simple under the above Act. In order to qualify under the Act, one of the conditions set out in section 10 of the Act must be complied with by the lease. I enclose a copy of section 10 of the Act. If your application is to proceed, you will have to show which of the conditions therein contained applies in this case.

Please state under which of the conditions set out in section 10 of the above Act the applicant claims to be entitled to purchase the fee simple, and show how that condition is complied with.

If you claim to qualify under condition 7 as extended by section 72 of the Landlord and Tenant (Amendment) Act, 1980, it will be necessary to show that the “superior lease” is a lease which would qualify under the Act.

The documents lodged do not establish that you are entitled to purchase the fee simple under the above Act. You may, however, be entitled under Condition 2 of section 10 of the Act, depending on the amount of the rateable valuation of the premises. Please, accordingly, furnish evidence of the rateable valuation of the premises, (e.g., an old rate demand note).

(IV) Expired Term

The term of the lease under which you held the premises has expired. Please state, accordingly, what is the nature of your present tenancy in the premises. Do you continue to pay the rent reserved by the lease? When was the last time such rent was paid? To whom was it paid?

Please show how the applicants satisfy either:

       1. section 15 of the above Act, or,

       2. section 9 of the above Act together with one of the conditions contained in section 10 of the Act, or,

       3. section 3(2)(c) of the Landlord and Tenant (Ground Rents) Act, 1967, as amended by section 73 of the Landlord and Tenant (Amendment) Act, 1980.

(V) Yearly Tenancy

Option 1 In order to be satisfied that you qualify under the above act, we will require an affidavit sworn by you disclosing the facts relied on to show that all the provisions of section 15 of the above act are complied with by the tenancy herein. The following points should be covered by such affidavit:

       1.  Is the land comprised in your tenancy covered wholly or partly by permanent buildings and any land not so covered subsidiary and ancillary to those buildings?

       2. Has the land been held continuously under such tenancy for not less than 25 years prior to the date of your application?

       3. Is the yearly rent less than the rateable valuation of the property at the said date?

       4. Were the permanent buildings erected by you If not, were they erected by your predecessor in title, (i.e., a former owner of your tenancy)?

       5. Confirm that, to your knowledge, the permanent buildings were not built by your landlord or his predecessor in title.

       6. Confirm that the contract of tenancy was not made for the temporary convenience of the landlord.

       7. Confirm that the contract of tenancy is not a letting which is made for or dependent on the continuance of the tenant in any office, employment or appointment.

Please, also, say how you became such tenant. Did you enter into an agreement with the landlord to create such tenancy? Did you take over the tenancy from a former tenant? Did you inherit the tenancy? Did you get an assignment of the tenancy from a former tenant? What, in short, were the circumstances in which you became tenant?

Option 2 Please lodge an affidavit sworn by the applicant disclosing the facts relied on to show that all the provisions of section 15 of the above Act are complied with by the tenancy herein.

The following points should be covered by such affidavit:

       1. Is the land comprised in your tenancy covered wholly or partly by permanent buildings and any land not so covered subsidiary and ancillary to those buildings?

       2. Has the land been held continuously under such tenancy for not less than 25 years prior to the date of your application?

       3. Is the yearly rent less than the rateable valuation of the property at the said date?

       4. Were the permanent buildings erected by you If not, were they erected by your predecessor in title, (i.e., a former owner of your tenancy)?

       5. Confirm that, to your knowledge, the permanent buildings were not built by your landlord or his predecessor in title.

       6. Confirm that the contract of tenancy was not made for the temporary convenience of the landlord.

       7. Confirm that the contract of tenancy is not a letting which is made for or dependent on the continuance of the tenant in any office, employment or appointment.

Please, also, say how you became such tenant. Did you enter into an agreement with the landlord to create such tenancy? Did you take over the tenancy from a former tenant? Did you inherit the tenancy? Did you get an assignment of the tenancy from a former tenant? What, in short, were the circumstances in which you became tenant?

(VI) Business Premises The premises herein appear to be used partly for the purpose of a business. We are, therefore, unable to issue a vesting certificate in respect thereof and an award refusing this application will be made unless evidence to the contrary is produced within 21 days (See section 19 of the above Act). The application may be withdrawn during the interim. An appeal against this award can, of course, be made to the Court.

(VII) Flats (Select appropriate paragraphs) Is the property herein divided into two or more separate and self-contained flats? If not, how is it used and occupied? Please refer to the definition of “dwelling” in section 3 of the above act, which excludes separate and self-contained flats. We are, accordingly, unable to issue a vesting certificate in this case. The application should, therefore, be withdrawn.

(VIII) Plot exceeding 1 Acre It is noted that the area of the property exceeds one acre. How is it shown that the portion of the land not covered by permanent buildings is “subsidiary and ancillary” to them (section 9(1)(a) of the above Act)? In this connection, you might have regard to the remarks on the meaning of these words in the judgement of Judge Shannon in the case of Killeen v. Lord Talbot de Malahide, (1951 Irish Jurist Reports, p 19).

As the property exceeds 1 acre, the provisions of subsection (5) of section 7 of the Landlord and Tenant (Amendment) Act, 1984, do not apply. The purchase price will, accordingly, have to be fixed in accordance with subsection (3) of the said section, i.e. at “the sum which … a willing purchaser would give and a willing vendor would accept for the fee simple or other interest” as at, (the date of the application), having regard to all the factors set out in the said subsection.

Can you agree such value with the landlord and superior interests?

Alternatively, please lodge a valuation of the fee simple interest under the said subsection given by a competent valuer.

(IX) Residue of Term less than 15 Years As there are less than 15 years remaining on the lease, the purchase money will be assessed under subsection (8) of section 7 of the Landlord and Tenant (Amendment) Act, 1984.

Please lodge a report from a competent valuer setting out the following:

       1. The precise location and description of the premises.

       2. The net floor area and its particular use, e.g., shop, store, residential, etc.

       3. The market value of the property in fee simple with vacant possession as at the date of the application, (i.e., xx xx xxxx ), viz., “the amount which a willing purchaser would give and a willing vendor                   would accept for the land in fee simple free of all estates, interests and incumbrances, but having regard to any covenant which continues in force by virtue of section 28 of the above Act, and                           assuming that the lessee has complied with any other covenants or conditions in his lease that could affect the price.”

(X) Apportionment of Rent The rent reserved by the lease will have to be apportioned in accordance with the provisions of the Ground Rents Acts. A copy of the enclosed notice in GR Form 5, properly completed by you should, accordingly, be served on your immediate landlord and on the owners/occupiers of the other premises demised by the lease. The notice may be served by hand or by registered post.

Please let me know in due course:

       1. the names and addresses of the persons on whom the said notice was served;

       2. the manner and date of service of the said notice, and

       3. whether any reply was received to same.

(XI) Purchase Money paid to Landlord I note that a sum was agreed with and paid to your immediate landlord when you attempted to obtain the fee simple by the consent procedure.

We do not know, however, what share of this money your immediate landlord was entitled to receive. It appears that there may be a superior owner to your immediate landlord who is entitled to some of this money.

We, therefore, cannot issue a vesting certificate in the matter until either the entire amount of the purchase money and an up-to-date receipt for ground rent (or the arrears of same due to the next gale day) are lodged in this office, or, alternatively, the shares of your immediate landlord and the superior landlords are established and it is shown that all the persons entitled to the money have received their share.

A person’s entitlement to receive the purchase money (or a share of same) may be established by lodging evidence of their title or a certificate by a solicitor in GR Form G. The Counterpart Lease must also be lodged by the immediate landlord.

If there is more than one interest in the property and you wish to rely on the GR Form C consent agreed with your immediate landlord, you will also have to show what proportion of the purchase money your landlord was entitled to receive (viz. what is the profit rent).

It is open to you, of course, to seek a refund of the purchase money from your landlord and to lodge the amount of the award with us in due course when the amount of the award has been fixed. Please notify us if you choose to adopt this option.

(XII) Continuation by Purchaser from Original Applicant If the application is to be continued by the purchaser, an application in GR Form B signed by him should be lodged, together with a copy of the assignment.

(XIII) Housing Authority Tenant Please refer to section 26 of the above Act. The vesting of the fee simple in this case should be effected by a Transfer Order of the Local Authority in accordance with subsection 7 of that section. The present application should be withdrawn.

(XIV) Reminder With reference to the above application for a Vesting Certificate, please find enclosed a copy of the query which was issued to you on __________. To date we do not appear to have received a reply. Unless we receive a full reply to this query within 21 days of the date of this letter, this application will have to be abandoned and all documentation and fees will be returned. Please note if the case has to abandoned it may then be re-lodged at a later date when all the queries have been dealt with.

(XV) Leasehold Term indicates that the interest is a Sub-Lease The term of your Lease ( __________ years), tends to indicate that you hold your title under a Sub-Lease. In these circumstances it is necessary to obtain the consent of any outstanding intermediate Lessors (and of the Fee Simple or Freehold Owner), unless the intermediate interest or interests have been formally assigned to or surrendered to the owner of the Fee Simple, in which case please ask the person who signed the Landlords Consent GR Form C as Fee Simple or Freehold owner to confirm in writing that there are no intermediate interests or any other interest other than his/her/its own.

I enclose a blank GR Form C for completion by the appropriate sub-landlord, if appropriate.

N.B. The onus of lodging all the necessary Landlords’ Consents in GR Form C is on the Applicant. The Consent is required of every person or body who would be a necessary party to the conveyance of the property in fee simple free from incumbrances.

(XVI) Query on GR Form G I refer to your application for a share of the purchase money in the above case.

The certificate in GR Form G lodged by you does not specify what interest you held in the premises, nor have you provided information concerning your profit from the premises.

To enable me to deal with your claim, I require the following information:

       1. What estate or interest you held in the premises?

       2. Whether any head rent was payable by you to any person, the amount of such rent and the name and address of the person to whom it was payable?

       3. If you held under a lease or fee farm grant, the date and parties of the lease or grant, the term of years, the amount of the rent, and the total annual income you were entitled to receive from the                       property held by you under that lease or grant.

If you were the true landlord of the person to whom the vesting certificate issued, then you ought to have in your possession the landlord’s counterpart of that person’s lease. This counterpart lease, (if not already lodged), must, therefore, be produced or its absence explained. Lodgement of a copy thereof is not sufficient.

(XVII) Consent of Fee Farm Grantor not available The Freehold folio ____________ of which your property forms part, is subject to a Fee Farm Grant and it will not be possible for you to obtain the Consent of the present owner of this grant. It will be necessary therefore to convert your application to the Arbitration Procedure.

For this purpose please lodge the following:

       1. GR Form B to be signed by you (Enclosed).

       2. Additional fees of 75.00.

       3. A copy of your Lease.

       4. A copy of your Assignment (Only if you are not the original owner of the above property.