Building insurance dating back two years - do I have to pay?

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  • #16
    Originally posted by mrsb2b View Post
    Hi Andy,

    My lease requires payments in advance - it says I should make two equal half-yearly payments in advance. It also says the landlord is required to provide an estimate of the likely costs of repairs to be carried out in the forthcoming year and that at the end of each year, the landlord is required to provide an account and certificate indicating the actual expenditure (he hasn't done either of these since 2010).
    Then you write

    Dear Mr Landlord

    Under clause XX you are required to certify the expenditure for the period ending YY and ZZ.

    Under clause AA you are required to refund the surplus/invoice the deficit/apply either S or D into the next estimate/credit the reserves ( what does your lease say?).

    Would you therefore confirm in writing within 5 working days that you will undertake to do so within 21 working days. If you fail to do so within 5 days this letter is a formal demand to certify those periods YY and ZZ under section 21 of the LTA 1985. Failure to do so within one month* and five days of this letter will result in my asking the local Authority to prosecute you and/or seek your prosecution in the local magistrates Curt as failure to comply is a criminal offence. I will then apply to the County Court to require that (clause A) is complied with.

    With regard to the insurance invoices as you will know my lease requires that service charge are estimated in advance and billed accordingly and therefore the lease does not allow the "one off billing" of insurance premiums. I am therefore not obligated to pay these. As the first notification or demand for these amounts was on the (date) I am only responsible for amounts incurred in the last 18 months, under section 20B of the above Act and I am sure will take that into account when preparing the certificates above.

    I am making a payment of £X on account without admitting or agreeing that the amounts demanded to date are recoverable, due, or fair and reasonable.




    * If the last accounting period was less than 6 months ago then they have up to 6 months from when it ended.
    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


    • #17
      I forgot to add the other reason that makes me believe, that in in general, it's best to pay and then dispute rather than withhold and it's the s146 covenant.

      If the lease states that the LL can recover their costs 'in contemplation of proceedings under s146 or 147' then there is a greater risk of them being able to recover their costs if you haven't paid the demand.
      I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.

      Comment


      • #18
        You can only withhold where there is a statutory right, but as said at the risk of costs, any attendant right to say, the right to withhold a SC, should be exercised, such as challenging the amount/cost at the LVT.

        If you do intend to withhold where there is no right to do so, immediately raise your queries and then depending on the asnwer, get your retaliation in first - as above - make an application to the LVT - don't posture.
        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


        • #19
          Thank you - this was most helpful indeed.

          Comment

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