Freeholder refuses to take out buildings insurance

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    Freeholder refuses to take out buildings insurance

    I own a leasehold flat which is part of a block above shops. The freehold has been sold and the new freeholder is refusing to provide buildings insurance saying that the individual leaseholders should provide their own buildings insurance. The covenant states it is the freeholders responsibility to provide the buildings insurance which we have paid for in previous years.

    The previous freeholder charged each leaseholder £700 for a policy that cost them £330 per property. They issued the insurance certificate to us then cancelled it the day before it would have come into force. I hoped the new freeholder would solve this problem. This is the fourth freeholder in 4 years, they have all been useless. There is no maintenance agreement and only a £100 peppercorn ground rent. I do not want the hassle of setting up an agreement with the other leaseholders, I just want to be insured.
    Can I take out my own buildings insurance? or an indemnity policy to protect my property only? Or is the only option to employ a solicitor to force the freeholder to fulfil his duties, followed by the LVT to prevent this freeholder also taking excessive profits?

    Thanks Jason

    #2
    Yes, you could insure your own flat- and I do hope that it's standing insured right now- but you should not have to! You need to propel L into complying with its insurance covenant: by proceedings against it, if needed.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      My flat isn't insured at the present. Letters and threats of legal action against the last freeholder just resulted in them selling the freehold and i'm back in the same situation.

      This is why I would like to take out my own buildings insurance but I am worried that is will not be honoured if I need to claim. My flat could not be rebuilt on its own being in part of a block. The shops below the flats are not on the same freehold as the flats above.
      Can I take out standard buildings insurance or do i need to go to a specialist?

      Thanks in advance

      Comment


        #4
        Get that insurance in place RIGHT NOW (TODAY)- and resolve the 'who ought to' later.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          Plus you've probably also committed an inadvertent breach of the mortgage conditions.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


            #6
            Most of the major lenders who provide mortgages understand this and will put it on cover. Avoid the call centre if you can as they will not understand.

            Contact the local council who enforce the failure under section 30A of the landlord and tenant act 1985 to provide a summary of cover, the threat of crminal proceedings should focs the mind, and get legal advice for enforcing the covenants to insure by the landlord under the lease.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              Thats great, thanks for your advice I will sort the insurance out today

              Comment


                #8
                I wish to make a claim against the Landlords block insurance policy which we four flat owners pay for, but Landlords insurance brokers has said the landlords (named policy holders) do not want me to have a copy of the insurance policy in spite of the fact that it states a copy of the policy is available on request on the insurance certificate, so I sent an e-mail to the Landlords management company, and their insurance brokers and the Insurance Companies own claims dept asking this question but none of them will tell me who I am supposed to request a copy of the policy from.
                moonface

                Comment

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