Sharing buildings insurance

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  • Sharing buildings insurance

    Hi there, i'm wondering if anyone can help me. I bought the freehold of a terraced house some time ago which is split into 2 flats. I have 2 floors and another freeholder has one floor. Since living there he has always stipulated the split of our shared buildings insurance to be 75% paid by myself and 25% by him which I have paid over the years despite it sounding unfair given that the flat is more generally split 66% - 33%. Is this a reasonable way to split the costs?

    I spoke to our insurers and they suggested the 66% - 33% split was how it should be done and paid up. His management company paid up before clearing with him and he is now demanding the money back from the insurers which will leave the policy voided. Do I have any legal standing where his payments are concerned? He is a very awkward character and is always trying to shirk his responsibilities, I have explained things fully to him as has the insurance company. It would be good to get some advice on where I stand and would be greatly appreciated.

  • #2
    The way in which it is split should be set out in your lease. it may be fixed share a 1/3 or 66% or a fair proportion.

    As the freeholder you most usually have to insure the building and recover the cost under the lease. In that case the insurer should not be refunding any money, they have been paid their premium, how you and your leaseholders divvy it up are up to you.

    What does your lease say? That's the starting point.

    If it is not fixed then the usual way is on floor area of the units with a slight weighting to the renewal costs of fixtures and fittings in the smaller flat, and any other circumstances.
    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


    • #3
      Thanks a lot for the reply, i'll have to dig the lease out and check the smallprint.

      "If it is not fixed then the usual way is on floor area of the units with a slight weighting to the renewal costs of fixtures and fittings in the smaller flat, and any other circumstances."

      I'm wondering if you know of a specific guide detailing how to breakdown the costs or is it something expensively discussed by solicitors when two parties cannot agree.

      Comment


      • #4
        No there is no guide it is a matter of expertise which surveyors are trained to assess. But focus on the lease, this may be irrelevant if the proportions are fixed,


        There is no small print ( literal or otherwise) in leases, it is ALL relevant.
        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


        • #5
          I've had a look in the lease and there's nothing in the paperwork mentioning it. The lease actually pertains to a contract between Westminster council and a previous owner who bought it from the council as one unit. At some point the place was split into 2 flats and sold to 2 separate people and I bought the freehold from one of those people. The lease I received upon purchase mentions nothing about the fact that the building is split between 2 owners and only mentions the insurance in that the money needs to be paid to the lessor - Westminster council.

          Should this paperwork have been updated when I purchased the property? This was the only paperwork that my solicitor presented me with. I'm wondering where this leaves me now. The other freeholder is demanding his insurance money back and refusing to pay it, is my only recourse to take him to court?

          Many thanks for anyones assistance on this.

          Comment


          • #6
            Then I suggest that you go to HMLR and download the freehold register and see what leases the property is currently subject to. if it only refers to the head lease , then you will ahve to look a that title and see if the flats have under leases.

            Then we know what documents to locate to see who does what.
            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

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