About 15 years ago, I purchased a 2/3 bedroomed flat above a commercial property. The flat is on the first floor, and the only one in a converted building. On the ground floor in the same building, and in a single storey extension to the rear is the commercial business. Thus the flat occupies one-half of the original building, and about one-third of the total property by floor area. The owners of the business are also the freeholders, and we generally get on well.
Before purchasing the flat, I had a series of exchanges (including faxes, letters, but only from me - a mistake in hindsight) with the business about the lease which stipulates that the flat pays 50% of the buildings insurance, and it was agreed that the flat need only pay one-third of the insurance costs, and that occurred for 11 years. However, due to a change in directors of the business a few years ago, the freeholder now splits the buildings insurance 50:50. Besides the apparently unfair split (the leaseholder is essentially subsidising the commercial business), the insurance policy also now includes clauses (such as protection due to loss of cash) that apply solely to the business.
I have asked the freeholder that we return to the 33:67 split that we agreed 15 years ago (verbally, with a follow up letter from me). The freeholder has agreed in principle to a more equitable split. However, they have now asked for a 10k cash sum to represent loss in income over the remaining years of the lease. Is that reasonable? Or could I challenge that view in a FTT, and avoid paying any cash sum to vary the lease? And (excuse my ignorance!) but would the cost of a FTT be an expensive route anyway to resolve the matter?
Thanks for any advice.
Before purchasing the flat, I had a series of exchanges (including faxes, letters, but only from me - a mistake in hindsight) with the business about the lease which stipulates that the flat pays 50% of the buildings insurance, and it was agreed that the flat need only pay one-third of the insurance costs, and that occurred for 11 years. However, due to a change in directors of the business a few years ago, the freeholder now splits the buildings insurance 50:50. Besides the apparently unfair split (the leaseholder is essentially subsidising the commercial business), the insurance policy also now includes clauses (such as protection due to loss of cash) that apply solely to the business.
I have asked the freeholder that we return to the 33:67 split that we agreed 15 years ago (verbally, with a follow up letter from me). The freeholder has agreed in principle to a more equitable split. However, they have now asked for a 10k cash sum to represent loss in income over the remaining years of the lease. Is that reasonable? Or could I challenge that view in a FTT, and avoid paying any cash sum to vary the lease? And (excuse my ignorance!) but would the cost of a FTT be an expensive route anyway to resolve the matter?
Thanks for any advice.
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