There has been a change in legislation with effect from the 1st July 2014 as a result of the induction of Section 32 of the Local Government Reform Act 2014. Resulting from this change, Landlords now have an obligation to inform the Local Authority that a Tenant has transferred its interest within two weeks of the signing of the document transferring that interest.
This may be as a result of an assignment or it may as a result of forfeiture of a previous Lease and the issuing of a new Lease to a new Tenant.
If there are arrears of rates owed by the previous Tenant, the Landlord will become liable “for a charge equivalent to no more than two years of the outstanding rates due” by the previous Tenant where; (a) a Rating Authority has not been notified by the Landlord of an assignment and (b) the Landlord did not discharge the arrears on the assignment. Any such charge will affect the property for a period of twelve years.
It is therefore extremely important that a Landlord should ensure that their Tenant(s) rates are being paid at all times and, in particular, it is important that Landlords comply with the statutory requirement by serving a Notice in the event of a change of Tenant for whatever the reason.
We are M.G. Ryan & Co. Solicitors can advise Landlords in relation to the requirements of the legislation. For further information, please contact our office for a consultation or quote on 091 564011 or e-mail email@example.com.