Rentcharges Act 1977
A rentcharge is a quite unusual property right and it is an obligation on the owner of a freehold estate in land to pay regular sums of money to another person such as for maintaining a wall or a building. It is either perpetual or for a term of years absolute in possession.
Under the Rentcharges Act 1977 rentcharges will automatically be extinguished in 2037 because they have a maximum life of 60 years, calculated from the date of commencement of the rentcharge or the date the Act came into force, whichever is the later. Therefore whilst no new rentcharges can be created it continues to be possible to protect the benefit of a rentcharge by application to the Land Registry for its own Registered Title.Although the rentcharge must be ‘in possession’ this Act allows them to be legal even if they are to become payable at a future time after their creation. An exception to this rule is where the rentcharge is to take effect following the determination of an earlier interest.