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

  • Filter
  • Time
  • Show
Clear All
new posts

  • #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.


    • #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.


      • #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.


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


          Latest Activity


          • Breakdown of LA costs...
            As a LL am I able to insist on seeing the breakdown of costs each quarterly bill?
            We appointed a new Agent to manage the property and now only get one figure on the bill to be paid. Before we received a full breakdown of each item such as gardenng, lighting, insurance, postage etc
            20-08-2017, 17:49 PM
          • Reply to Breakdown of LA costs...
            Leaseholders should get anl audited annual service charge account within 6 months from end of reporting period. There is no right to received quarterly reports on spending.
            22-08-2017, 06:21 AM
          • service charge payments
            Hi, there are 36 flats, 12 flats per block where I live. My lease says my contribution is one thirty sixth for a 2 bed. Looking at the service charge payments provided I can't work out what percentage the other flats pay, some are 1 and 3 bed as the amounts noted are different for the same size flats....
            21-08-2017, 19:57 PM
          • Reply to service charge payments
            Yes, I agree with AndrewDod , you have to pay the % stated in your lease.
            22-08-2017, 06:15 AM
          • Reply to service charge payments
            As others have said - you pay the % that is in your lease. Fairness (I have a bigger garage, I have a smaller flat) has nothing to do with it.
            21-08-2017, 22:31 PM
          • Reply to service charge payments
            Also, are you sure there are not three percentages:

            one for the grounds, covering all 36 flats

            one for the block, covering 12 flats

            one for the garage.
            21-08-2017, 20:34 PM
          • Reply to service charge payments
            You can get the total amount payable for each thing for which you have a different percentage by making a section 21 request for a summary of accounts. Best practice is that this should be provided automatically. This will be for the previous year.

            To find out the percentages, you need...
            21-08-2017, 20:29 PM
          • Reply to service charge payments
            Hi, I'm slow on the uptake so not clear where you are referencing your data? Doesn't sound like all from your own lease?

            The total service charge would need to add up to 100% of costs. Likewise the schedule for garages.

            Short of paying £12 x 36 for all the individual leases...
            21-08-2017, 20:21 PM
          • Reply to Breakdown of LA costs...
            Normally the bills are payments on account, so represent something based on budget for the year, and possibly a longer term budget, not the actual expenditure.
            21-08-2017, 20:14 PM
          • Reply to Breakdown of LA costs...
            Hi, if you are the landlord of one of 18 flats then you are the leaseholder. What do you mean when you say "we" appointed a new agent?

            Are you part of n RMC or RTM cpompany?

            Service charges should be accounted for as you describe, broken down into cost heads, but...
            21-08-2017, 20:00 PM