Bizarrely, the excess figure came down and the insurance premium came down after the claim? It has not been easy to get quotes from some brokers and we were turned down by a few after the claim
Secret commissions
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Whilst technically correct that it is not consistent with most leases, the Law Commission have confirmed that charging D&O to the service charge is very common, seem to think D&O is desirable, and also are in favour or changing statute to make payment of company expenses from service charges legal, even when the lease doesn't allow that
My gut feeling is that whilst it might not pass as a defective lease, there would be a lot of sympathy towards accepting a request to change the lease based on an overwhelming majority supporting the change,
If you did win a a case I think that would just increase the pressure to legitimise this by statute.
Whilst I wouldn't advise the other side to start doing this, I don't think it is an appropriate issue on which to raise a challenge, as there seems to be a general feeling that the strict legal position is inappropriate in the modern world.
I've certainly come across people who refused to become directors because they couldn't have it.
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Originally posted by Stacker View PostOn reading through previous FTT cases yes obtaining the insurance on a like for like basis is required. As an example the previous insurance covered the permitted pets and now it does not. Another example the % paid out for alternative accommodation has been substantially reduced.
I really don't see why a Freeholder would have to provide like for like insurance, and cover things that the lease didn't require, just because these might have been included in the past.
It would be reasonable for the freeholder to have made sure that leaseholders were informed that less would be covered, so that they could potentially arrange their own additional cover if they considered this necessary.
Originally posted by Stacker View PostWithout the leaseholder knowing the Director wrote to the insurance company and stated in writing that "the leaseholder was responsible because of a faulty washing machine not plumbed in properly", she put this in writing, the insurance loss adjustor of the company then contacted the leaseholder and started asking him lots of questions, he thought it was odd they were asking about the plumbing to a washing machine when the leak was due to something else as confirmed by a plumber.
Could be a genuine mistake however this same Director collaborated on a secret commission deal which came out of the woodwork many months later.This same director also did not tell the insurance company that a business where people are coming, staying and going from the property through the communal parts...was going on...did not declare this to the insurance company. No business allowed for in the lease.
Originally posted by Stacker View PostSpoke with LEASE and D&O insurance can not be recovered from the lease or any company expenses. Also LEASE said that if a leaseholder paid towards this directors insurance they would be helping the directors to insure their losses against him if he won!
Morally though, and if you actually want people to be prepared to agree to take on the role of looking after your building, you should accept the inclusion of these in the service charges (really legislation should be passed to permit this and remove the problem).
I'll ask again, would you be prepared to take on the role of director if you would have then have to pay company expense out of your own pocket, and would also have to pay to insure yourself in case you make a mistake and end up getting sued? Not many people would, which means that leaseholder owned companies may be more likely to end up being run by people who think they can use the position for their own benefit than by people who would genuinely look after the interests of all leaseholders.
Company expenses, including D&O insurance, are likely to be an insignificant cost when split between all leaseholders, but may be significant enough to prevent potential directors from standing if they have to pay these themselves.
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Originally posted by eagle2 View PostA leaseholder is only able to challenge on the basis that he can obtain like for like insurance at a lower premium.
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Originally posted by Macromia View PostYes, I am well aware that D&O insurance, and other company expenses are expenses that are not recoverable under the terms of most leases.
Morally though, and if you actually want people to be prepared to agree to take on the role of looking after your building, you should accept the inclusion of these in the service charges (really legislation should be passed to permit this and remove the problem).
I'll ask again, would you be prepared to take on the role of director if you would have then have to pay company expense out of your own pocket, and would also have to pay to insure yourself in case you make a mistake and end up getting sued? Not many people would, which
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Originally posted by leaseholder64 View PostA lot of people here seem to want ground rents made illegal, and a lot of ground rents have been eroded by inflation to the point where they are too costly to collect.
Ground rents (which lessees knowingly sign up to) are a minuscule problem in comparison with theft and various other illegal and inappropriate behaviours by freeholders (which lessees do not knowingly sign up to). The whole legislative debate about leaseholds in misguided and misdirected.
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Originally posted by AndrewDod View Post
Or that the insurance insures things that are not within the remit of the lessor to insure. We successfully claimed a policy was invalid as a result. So yes, like for like (like the same insured value -- unless that is wrong, and the same statements of fact -- if those are truthful). FTT would hardly only accept a challenge on the basis of quotes which reproduced a fraudulent statements of fact.
However, if the insurance previously included cover that the leaseholders all considered worthwhile, but which the freeholder was not obliged to include under the terms of the lease, the freeholder does not need to continue to provide 'like-for-like' insurance and continue to cover these additional risks (unless they have been providing that level of cover for so long that the 'estoppel' argument could be used). In fact, the freeholder might be wise not to continue to provide like-for-like cover under these circumstances because any additional costs would be ruled unrecoverable if a leaseholder decided to challenge them.
So, it is wrong to say that like-for-like insurance cover must be provided. What must be provided is the insurance cover that meets all of the requirements given in the lease (and all legal requirements, with legal requirements taking precedence if they contradict the lease), no more, no less.
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by Martin448AHi,
received a letter out the blue from someone claiming to be the executor of the deceased freeholders of my leasehold maisonette. Have never receive ground rent request for payment for any of the years I have owned the property or has the other maisonette in my building.
They are now requesting...-
Channel: Long Leasehold Questions
16-08-2022, 00:30 AM -
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Reply to Ground rent arrears from executorby Martin448AI did look at buying the freehold a few years ago but there solicitor quotes up to £4000 costs and I believe that was more then the value of the lease itself !
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Channel: Long Leasehold Questions
17-08-2022, 06:10 AM -
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by divadeeHi, I hope I can write this in a clear way that makes sense!
We bought a leaseholders flat in 2016, the next year we bought the limited company that held the freehold. This was done as no other leaseholder were interested in buying the freehold a few months prior to us buying our leasehold...-
Channel: Long Leasehold Questions
16-08-2022, 16:37 PM -
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Reply to Sale of Freehold - Tax to Payby divadeeThank you. We are getting in touch with our management agents today. Although after it completes they may not be as helpful as we don't think the leaseholders are keeping them on (although the leaseholders couldn't organise a pee up in a brewery so it may be a disaster for them!)
We don't...-
Channel: Long Leasehold Questions
17-08-2022, 06:04 AM -
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Reply to Sale of Freehold - Tax to Payby sgclacyIt may be best to state that the company held the property in trust for you and therefore it is very important that in your personal tax return you show the gain. You must take professional advice on this
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Channel: Long Leasehold Questions
16-08-2022, 23:54 PM -
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Reply to Ground rent arrears from executorby LawcruncherThat may not be the case. See this thread: https://forums.landlordzone.co.uk/fo...and-limitation
Interest can be charged if the lease allows it. However, no interest can be charged before the service of a section 166 notice because...-
Channel: Long Leasehold Questions
16-08-2022, 21:35 PM -
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Reply to Sale of Freehold - Tax to Payby divadeeAnd one last image as it only let me attach 2 at a time....
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Channel: Long Leasehold Questions
16-08-2022, 20:09 PM -
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Reply to Sale of Freehold - Tax to Payby divadeeOh god I have a feeling something may have gone horribly wrong in all of this and we may of messed up! We have been advised by our management agents throughout all of this (who have managed the property for a good number of years as the previous freeholders used them as well) and just trusted what they...
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Channel: Long Leasehold Questions
16-08-2022, 20:08 PM -
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Reply to Sale of Freehold - Tax to Payby sgclacyIt would appear to have claimed roll over relief on the statutory lease extension where £14k was received - unless you had bought a property to roll over the gain this may have been premature
so on a base cost of £18k you will have received £12k plus £14k a gain of £8k so corp tax...-
Channel: Long Leasehold Questions
16-08-2022, 19:53 PM -
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Reply to Ground rent arrears from executorby Martin448AGround rent is £75 year, don’t have lease details with me but around 150 years
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Channel: Long Leasehold Questions
16-08-2022, 19:51 PM -
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