Freeholder adding rental insur. in buildings insurance - Am I liable for half?

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

    Freeholder adding rental insur. in buildings insurance - Am I liable for half?


    Hi, new to the perils of leaseholding and looking for advice.
    • My freeholder is taking out buildings insurance.
    • The freeholder owns the flat below which is rented out (we are a building of two).
    • I am an owner occupier but the buildings insurance includes tenants insurance and income protection of 100k.
    • The costs are being divided in half.

      I would like to dispute these costs as my risk & requirements are considerably less, do I have right to do so?

    Cheers in advance!

    #2
    What does the lease say?

    Comment


      #3
      Sorry, that would have been helpful! Cheers for the reply!

      "To repay the lessor one half of the amount or amounts from time to time expended by the lessor in effecting and maintaining insurance on the demised premises at the times and in manner aforesaid"

      Possibly also related

      ....."to pay half the contribution towards the costs and expenses of constructing, repairing, rebuilding and renewing and lighting, cleansing and maintaining all party walls and party structures"

      I have no problem paying half for the building insurance but feel the tenant insurance is discretionary and a business expense of the freeholder.

      Comment


        #4
        There would normally be a clause requiring that insurance to be taken out, and that is more likely tot say what is to be
        insured.

        Comment


          #5
          Also one more Lessor Covenants

          "To insure...the Lessee and his Mortgagee or Chargee (if any) the Building against loss or damage by the insured risks in some insurance office or with underwriters of repute in the full rebuilding value thereof"

          Comment


            #6
            leaseholder64 Apologies found it after further reading. Basically reinstating/rebuilding are my understanding. Thanks for your patience!

            (These tenants make my life a nightmare so I am refusing contributing anything towards them!)

            Comment


              #7
              If that is all it says, I would say that you the loss of rent insurance is not recoverable from the service charge. On the other hand, this also means you don't have alternative accommodation, or public liability cover which are highly desirable, or essential.

              Comment


                #8
                leaseholder64 Thank you so much for your advice, I really appreciate it!

                Comment


                  #9
                  ( To clarify for others )
                  When a lease mentions "Tenant"; the leaseholder is a "Tenant" of the freeholder.
                  The freeholder is the landlord of the leaseholder. ( Leaseholder is tenant )

                  When you let a flat, the renter is a Tenant of the leaseholder.
                  The leaseholder is the landlord of the renter. ( Renter is a sub-tenant )

                  Unfortunately, the word Tenant and landlord have 2 meanings, as above.
                  Which is why I always use "Sub-tenant" to describe a renter in a leasehold flat. And often, leases may have clauses mentioning sub-tenants ( Also known as under-letting )

                  Comment


                    #10
                    ram Thanks for the info. The terms are getting very confusing. For this insurance I am considered the "owner occupier/home owner" and my freeholder is considered the "tenant" as the landlord of the flat.

                    Ah the joy of leasehold!

                    Comment


                      #11
                      The freeholder is a landlord for both flats; the only difference is that one is on a long lease with a low rent, and the other, presumably, on a short lease with a high rent.

                      I doubt the insurance refers to owner occupiers at all. You are a tenant.

                      Comment

                      Latest Activity

                      Collapse

                      • Dealing with damp
                        scot22
                        It is a 19th century building converted into 10 leasehold flats. Three of the flats wish to tank their walls to deal with damp issues. My research is that this could cause more problems in other parts of the building. Are they allowed to do this without permission ?
                        04-02-2018, 12:59 PM
                      • Reply to Dealing with damp
                        scot22
                        Thanks for prompt and helpful advice. This has been recommended by a surveyor and freeloader to pay. Don't ask me why but they object to this !
                        25-05-2019, 13:35 PM
                      • Leasehold Deed of Variation for Service Charge
                        Petesam73
                        Hi,

                        I’m the freeholder of a block of flats, and we’ve just agreed (myself and the leaseholders) a change to the service charge percentages. I understand that a Deed of Variation is the best way to enact this given that nothing else is changing. I also understand that a simple amendment...
                        25-05-2019, 10:56 AM
                      • Reply to Leasehold Deed of Variation for Service Charge
                        Petesam73
                        The percentages were set ages ago (late 1990s) and there are no records of what led to that choice (the flats are roughly equal sizes (in sq ft) though the service charge split isn’t). The only clue is that the one currently paying more occupies two floors including the roof space, so maybe someone...
                        25-05-2019, 13:25 PM
                      • Reply to Dealing with damp
                        bluebonnie
                        A 19th century building should probably have lime mortar - which would enable dampness to evaporate rather than penetrate the walls. It's a mistake to replace lime mortar with cement mortar. The freeholder is probably responsible for that mistake.

                        Get a surveyor or a structural engineer...
                        25-05-2019, 12:52 PM
                      • Reply to Dealing with damp
                        scot22
                        Sorry to revive thread. Flats on first and second floor. They want Freeholder to pay , not take on responsibility themselves. Freeholder lease obligation is to repair and maintain. Cement mortar pointing in good condition. Is there anything RMC should do ?
                        25-05-2019, 11:57 AM
                      • Reply to Leasehold Deed of Variation for Service Charge
                        Lawcruncher
                        You can certainly do this without a lawyer. However, like many things, it is easy when you know how and there is always scope for getting it round your neck. Have a go at drawing up something and post it here. At the same time post the exact wording, including numbering, of the clause which sets out...
                        25-05-2019, 11:23 AM
                      • Solicitors advised me to buy freehold and leasehold, now unable to extend own lease
                        eshroom
                        I bought a flat with a defective lease (missing pages, short lease, wrong plan etc.). I advised solicitor that freeholder was open to selling the freehold (with other leaseholder not interested in buying a share).

                        Solicitor advised I should not complete on leasehold without completing on...
                        24-05-2019, 12:24 PM
                      • Reply to Solicitors advised me to buy freehold and leasehold, now unable to extend own lease
                        Lawcruncher
                        Not quite sure what you mean by reversionary lease here as it means a lease which takes effect at a future date, which clearly cannot be the case.

                        I note what you say about wanting to get your money back, but consider the following:

                        The expense of getting a new lease drawn...
                        25-05-2019, 10:29 AM
                      • Reply to Solicitors advised me to buy freehold and leasehold, now unable to extend own lease
                        eshroom
                        The freehold was quite expensive as both leases were reversionary and with neighbour not interested in extending I'd like to get some of my the money I paid back.

                        I do understand the value of the freehold is appreciating the longer an extension does not take place, and they are currently...
                        25-05-2019, 08:35 AM
                      Working...
                      X