Shared ownership house insurance

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Shared ownership house insurance

    Hello

    I'm looking into an issue for someone who lives in a shared ownership house. His lease requires him to pay for a buildings insurance policy provided by the landlord. It appears the landlord (the housing association) has purchased a block policy, covering all of their properties within many miles of the house in question. The cost of insurance has doubled in one year, to over £400 for a modest two bedroom property.

    This seems a particularly lazy and unfair policy, where leaseholders are subsidising excessive claims or perhaps flooding/subsidence/etc elsewhere.

    I assume this is a legal approach to providing buildings insurance but is there any up to date advice on this topic, for example, compelling the landlord to seek the lowest cost? Or perhaps the ability for a leaseholder to provide their own insurance to the satisfaction of the landlord?

    Thank you.

    #2
    This looks very relevant! https://www.legislation.gov.uk/ukpga...15/section/164

    Comment


      #3
      The key question I'm asking is whether this piece of legislation can be used under shared ownership.

      Comment


        #4
        Read the free guide to leasehold house insurance at www.lease-advice.org -

        https://www.lease-advice.org/faq/i-a...y-own-insurer/

        Comment


          #5
          Originally posted by Gordon999 View Post
          Read the free guide to leasehold house insurance at www.lease-advice.org -
          Thanks. I've read this and it deals with the use-case where the leaseholder is required to arrange insurance. My use-case is where the landlord sets up the insurance and leaseholder required to pay, however inefficient the landlord process may be.

          Comment


            #6
            You should read the lease and see if the wording in relevant clause on insurance allows the tenant to arrange insurance.

            Send an enquiry to the legal advisor at www.lease-advice.org.

            Comment


              #7
              The Landlord passes on the entire buildings insurance cost to shared ownership leaseholders, and charges them rent.

              The lease defines the "Specified Insurance Proportion" as follows: such fair and proper proportion determined by the Landlord.

              This suggests the Landlord can deem the proportion (of the insurance cost) as 100%, but that does not seem "fair". Is there any case law to determine what is a fair proportion in a situation where a leaseholder only owns 25% of the property?

              Comment


                #8
                It is quite normal, under shared ownership, to pass all service charges to the bottom level leaseholder. If that didn't happen, the rent would need to be increased and inflation proofed, to compensate. Insurance is a service charge.

                I imagine the fair and proper reference comes from cutting and pasting text intended to cover blocks of flats, where the insurance cost is split amongst the flats.

                Comment


                  #9
                  I can see that point of view, but I can also see a different one. If one only owns a share, and pays rent on the remaining share, why isn't the Landlord responsible for paying to insure their share as a private landlord does when a tenant pays rent?

                  The primary concern however is the cost of the policy. The Landlord has purchased a multi-million pound policy with a £50 excess, which is clearly being abused as the cost has doubled from £210 to £420 in 12 months (for a small, two bed terrace home). Comparable house insurance is available for £79 at a range of quality providers. Clearly, tenants are being ripped off.

                  Comment

                  Latest Activity

                  Collapse

                  • Freehold consent for extension
                    rbtynter
                    Hi- hope someone can help with advice.

                    Situation:
                    I own a garden (sole-use of garden) flat in converted terrace house. I have a share of freehold split equally between all of the flats in the building through a management company that each flat owns an equal share of.
                    I...
                    23-03-2013, 10:59 AM
                  • Reply to Freehold consent for extension
                    Clare McDowall
                    The demise only includes the interior of the flat hot ot the plaster on the walls but does not include the external and load bearing walls
                    21-10-2018, 22:46 PM
                  • RTM Director Conflict of Interest
                    Hemendr
                    Hi,
                    I am a leaseholder of building with 87 flats. We created our own management company RTM company to manage our building. The process of creating the RTM was led by two leaseholders who then convinced 45 other leaseholders to become a member of that RTM company. They appointed themselves as...
                    21-10-2018, 08:35 AM
                  • Reply to RTM Director Conflict of Interest
                    leaseholder64
                    I think what Gordon is trying to ask is whether there is anything in the lease that would allow the cost of concierge services to be charged to the service charge. It may say they must provide them, or it may say they may provide them. Otherwise, unless there is something else in the lease that could...
                    21-10-2018, 22:21 PM
                  • Reply to RTM Director Conflict of Interest
                    Gordon999
                    Does the Lease agreement say the"Lessor" or "Management Company" shall include concierge service ?
                    21-10-2018, 22:17 PM
                  • Reply to RTM Director Conflict of Interest
                    eagle2
                    A managing agent is appointed to deal with the day to day matters and comply with the lease and legislation. The directors should be supervising the managing agent and in order to do so I suggest that they refer to the RICS management code of practice if they do not do so already.
                    21-10-2018, 14:31 PM
                  • Reply to RTM Director Conflict of Interest
                    leaseholder64
                    I don't see any service levels in that contract!

                    I would be concerned that this was actually a contract of service, which would trigger all sorts of employee rights as well as PAYE.

                    "Including taxes" seems weird, unless Mr x is registered for VAT and it is a contract...
                    21-10-2018, 14:25 PM
                  • Reply to RTM Director Conflict of Interest
                    eagle2
                    I would hope that the “concierge duty” is defined and a list of specific duties is contained within the contract.

                    I do not think that you are entitled to make the assumptions simply because the managing agent has failed to respond to your questions.

                    You do not say whether or...
                    21-10-2018, 13:57 PM
                  • Reply to RTM Director Conflict of Interest
                    Hemendr
                    Hi, all thank you very much for taking the time to reply,

                    The Concierge contract says "Contractor Service Level Agreement Concierge Service" in heading. It's a Legally binding agreement between Mr x (Concierge) and <my RTM company name> to carry out Concierge duty.
                    ...
                    21-10-2018, 13:11 PM
                  • Reply to RTM Director Conflict of Interest
                    eagle2
                    There is nothing wrong or unusual about a conflict of interest and it does not need to be referred to a meeting of members for approval. The Articles of Association will state whether or not a director is entitled to vote in a matter in which he has an interest. Ideally, he would abstain when a decision...
                    21-10-2018, 12:30 PM
                  Working...
                  X