The Landlord and Tenant (Ground Rents) Act 2005 came into effect on the 19th May 2005.
The publicity following the introduction of the new legislation has alerted people (clients and practitioners alike) to situations where tenants might take advantage of wording in older and looser leases so as to buy out the freehold interest in their property and hold free of restrictive and other covenants.
The Government’s response to loopholes created by older or lax wording in drafting leases granted by State bodies or companies was to remove the right to buy the freeholds from tenants of specified State bodies or companies (over and above those listed in earlier legislation). This response does not assist private landlords, who, unlike the Government, cannot “change the goal posts” so as to protect the value of their holdings.
Latest media reports are that South Wharf has applied to buy out the freehold interest in the former Ringsend Glass Factory, leased by it from Dublin Port, and this is not forbidden under the 2005 Act.
Pat Ahern
