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hambone
Posts: 36 Forumite
My incredibly dodgy freeholder has insured our property (I am the sole leaseholder) for buildings insurance with a rebuild value of over £1,000,000. Yes £1 million to rebuild a 3 story Victorian house in north London.
The terms of my lease dictate that he organises the insurance, at his discretion, and I have to pay 50%.
This years insurance is a total of £2843.00, of which I have to pay half.
Whats he up to? Is it a scam? Seems we are both needlessly overpaying and the property is way overinsured.
Any ideas anyone? His broker wont even acknowledge me as he only acts on behalf of the freeholder. When I asked the freeholder he told me to go to hell!
The terms of my lease dictate that he organises the insurance, at his discretion, and I have to pay 50%.
This years insurance is a total of £2843.00, of which I have to pay half.
Whats he up to? Is it a scam? Seems we are both needlessly overpaying and the property is way overinsured.
Any ideas anyone? His broker wont even acknowledge me as he only acts on behalf of the freeholder. When I asked the freeholder he told me to go to hell!
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Comments
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Why not get your own quote and see what it comes out as, and then compare the difference?A friend is someone who understands your past, believes in your future, and accepts you just the way you are.0
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Is it a listed building or some other special case?0
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I'm sure he'll be requesting your rapid return when he realises you haven't paid your half...When I asked the freeholder he told me to go to hell!
"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
As a three story property, it may be what is known as 'non-standard' also if it is listed, it may be non standard. If it is in a flood/subsidence vunerable area the Insurance company will load the premium by 300%, so it could be a correct premium. However, the premium will depend on many factors, so it may not be very easy to get a quote.
I should think that if you are expected to pay half of this premium, then it would not be unreasonable to ask to see it. You should also ask to be noted as an 'Interested party' on the policy.
Hope this helps. I used to work in the Insurance industry, so can help with insurance queries to a point.
JenI love giving home made gifts, which one of my children would you like?
:A 0 -
Thanks for your replies.
The property is not listed or in a flood/subsidence vulnerable area but it could be seen as 'non standard' as the ground floor is a vacant office.
So I can understand that the risk is deemed as higher but surely the 'rebuild' value should remain the same . Under a previous freeholder in 1999 the rebuild value was £180,000 and I have been told by a broker that by today's valuation it should be no more than £300,000 ?
But this present freeholder has increased the rebuild now to over £1m. He is a property developer with many properties and has owned the freehold for 8 years. However only my address is on the schedule (he sends me a copy) so I dont think its a block policy but every year the rebuild value and the premium goes up.
I asked to be put on the policy as an interested party years ago but he did it.
I just dont get it and feel totally powerless to do anything!0 -
sorry I meant he did NOT put me on the policy as an interested party.....0
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Under a previous freeholder in 1999 the rebuild value was £180,000 and I have been told by a broker that by today's valuation it should be no more than £300,000 ?
But this present freeholder has increased the rebuild now to over £1m. He is a property developer with many properties and has owned the freehold for 8 years.
This is one way in which [expletive deleted] freeholders make money out of property. My freeholder, SGIK, is actually in print (in the Independent, about 12 years ago) saying that if he didn't make money out of the buildings insurance he would not have bothered to invest in property.
You could go to the LVT about this; but if you do you need to be aware of - and have lots of counter-arguments to - Berrycroft Management Co Ltd and others vs Sinclair Gardens Investments ( Kensington) Ltd. Otherwise, your freeholder will just play that precedent like a trump card.However only my address is on the schedule (he sends me a copy) so I dont think its a block policy but every year the rebuild value and the premium goes up.
It will be a commercial block policy, if your freeholder is a big property owner; having only your address on the schedule is normal.I asked to be put on the policy as an interested party years ago
I think that you are entitled to this so, if he doesn't cooperate, just send him an annual notice in writing so that you at least have a record of your interest. Eg "I, as the lessee of ......., Land Registry number ...., formally request that my interest be recorded on the buildings insurance schedule."
Someone may come up with better wording; that is just off the top of my head. I would copy to the Land Registry, too, every year.
See also this thread, especially post number 7 et seq
http://www.landlordzone.co.uk/forums/showthread.php?t=13154
Look also at past LVT decisions on the LEASE web site, where this precedent has been cited.YouGov: £50 and £50 and £5 Amazon voucher received;
PPI successfully reclaimed: £7,575.32 (Lloyds TSB plc); £3,803.52 (Egg card); £3,109.88 (Egg loans)0 -
ahh many thanks beaujolais-nouveau........now the situation is getting a bit clearer -
So freeholder has a large portfolio of (good and bad) properties which he block insures - in order to get this deal the insurer greatly inflates the rate.
Each property is billed individually by the insurer but monies have to be paid to the freeholder so he recoups his own costs of the block policy and prob makes a profit too.
If so, is the rebuild valuation of £1m the actual rebuild cost of all his properties together? or just a figure made up for my property between freeholder and broker in order to increase my bill ie they both win and I lose.....
lord, why does property developing attract the most unscrupulous characters????0 -
If so, is the rebuild valuation of £1m the actual rebuild cost of all his properties together? or just a figure made up for my property between freeholder and broker in order to increase my bill ie they both win and I lose.....
Well, without seeing your insurance schedule, I would say that the £1m is the rebuild cost of just your property. You may find that your freeholder is his own insurance broker - that is to say, that the two companies have directors-in-common: that is the case, with my flat. You could look them up on the Companies House web site.lord, why does property developing attract the most unscrupulous characters????
Before the leasehold enfranchisement and commonhold legislation was brought in, it was a way of making a lot of money from service charges; and in some instances it still is.YouGov: £50 and £50 and £5 Amazon voucher received;
PPI successfully reclaimed: £7,575.32 (Lloyds TSB plc); £3,803.52 (Egg card); £3,109.88 (Egg loans)0 -
oh god!! I know that my freeholder's brother in law is an insurance broker!!!!
I bet thats the missing link.........
Its all fascinating and all so so wrong.0
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