27A landlord and Tenant act insurance determination

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    27A landlord and Tenant act insurance determination

    Please could you share how you have been paying your insurance rent service charge? I was about to make an application to challenge the overcharging at FTT and found an FTT case Howe v Mahamood which says that if the payments have been made direct to the insurance broker I am prevented from challenging them at FTT, anyone else heard of this or any experience?

    This posting by law firm about FTT 's powers to give decision may interest you :



      Yes Gordon that is the case I am referring to but the Tribunal said the following :

      For all the years during which the appellant paid direct to the insurance brokers, rather than paying a contribution towards insurance through the service charge, I conclude that the amount of the relevant insurance premium has been “agreed or admitted” by the appellant so as to bring into operation section 27A (4) of the Landlord and Tenant Act 1985 as amended.

      It is provided by subsection (5) that a tenant is not to
      be taken to have agreed or admitted any matter by reason only of having made any payment. However in the present case the matter went beyond the appellant as tenant merely making a payment. Instead for the years 2007 to 2014 the appellant and the respondent have both proceeded on the basis of the appellant not making any payment through the service charge in respect of insurance premium but instead settling the matter directly with the insurance broker by paying the premium for the insurance on flat

      2. This involved the parties proceeding in a manner that was clearly not precisely in accordance with the lease. By doing so I conclude that the parties have agreed that the amount so paid by the appellant to the insurance brokers is to be treated between them as the agreed amount of the appellant’s liability in respect of insurance premiums for the years in question. The appellant is no longer entitled to challenge these amounts.



        You seem to understand this situation better than I do. If you are in a similar situation, by paying the broker direct , then you won't succeed in your claim.


          Fortunately I have just spoken with LEASE and they said its breach of covenant as the LL is asking me to place the insurance in a way which is a breach of the lease, to contract with a third party and here is the kicker....the unlawful property manager who set this up was not authorised by the FCA o place insurance and he took a hidden paper work commission, have also found the policy was not obtained on a like for like basis as per the previous year so we were not insured as per the lease. Fortunately when he presented the demand for monies he got the surprise surprise NOT apportionment wrong so I challenged it before it was placed so I am hoping this will be enough to take to the FTT or County Court.


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