Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    hillian
    Freeholder's Building Insurance - rip off?
    • #1
    • 25th Nov 13, 7:28 PM
    Freeholder's Building Insurance - rip off? 25th Nov 13 at 7:28 PM
    Hi,

    Does anyone have experience of paying a Freeholder annual buildings insurance?

    I recently bought a one bed flat (leasehold) in London and the freeholder has just sent me an annual bill for the buildings insurance for my flat alone as £700. It seems extortionate.

    It's a one bed flat 66 square metres, in a terraced victorian building that is split into three flats. All three flats pay the same amount of buildings insurance.

    I've asked the freeholder for backup to this fee but he's not replying.

    Appreciate any advice offered!!
    Thanks!
    Last edited by hillian; 25-11-2013 at 7:34 PM.
Page 1
    • dacouch
    • By dacouch 25th Nov 13, 8:18 PM
    • 19,476 Posts
    • 11,955 Thanks
    dacouch
    • #2
    • 25th Nov 13, 8:18 PM
    • #2
    • 25th Nov 13, 8:18 PM
    Hi,

    Does anyone have experience of paying a Freeholder annual buildings insurance?

    I recently bought a one bed flat (leasehold) in London and the freeholder has just sent me an annual bill for the buildings insurance for my flat alone as £700. It seems extortionate.

    It's a one bed flat 66 square metres, in a terraced victorian building that is split into three flats. All three flats pay the same amount of buildings insurance.

    I've asked the freeholder for backup to this fee but he's not replying.

    Appreciate any advice offered!!
    Thanks!
    Originally posted by hillian
    Flats have a lot of claims.

    Premiums in London are high due to theft claims and subsidence claims in the clay areas.

    There may have been a number of claims prior to you moving in which increased the premium.
    • G_M
    • By G_M 25th Nov 13, 8:25 PM
    • 35,525 Posts
    • 38,662 Thanks
    G_M
    • #3
    • 25th Nov 13, 8:25 PM
    • #3
    • 25th Nov 13, 8:25 PM
    Flats have a lot of claims.

    Premiums in London are high due to theft claims and subsidence claims in the clay areas.

    There may have been a number of claims prior to you moving in which increased the premium.
    Originally posted by dacouch
    All true. But the leaseholder is entitled to see the renewal quote for the building and how it has been apportioned between leases.

    I suspect there is also a mechanism for making the freeholder obtain several quotes, but this might need joint leaseholder action, and/or setting up a management company run by the leaseholders. I'm not knowledgeable in this area, but see:

    http://www.lease-advice.org/
  • ads2312
    • #4
    • 26th Nov 13, 11:06 AM
    • #4
    • 26th Nov 13, 11:06 AM
    best thing to do is get some quotes yourself then talk to http://www.lease-advice.org/
    We've had similar problems in one of my flats. High insurance, useless expensive management and every year we have extras to pay on top of the high service charge. It's a victorian conversion, 4 flats. From memory we paid about £1200 between us for insurance which was way over the top for the area. I've done a bit of research and could get it for quite a bit less.
    IMO best thing to do is talk to the other owners and go for RTM or if you can afford it the freehold. We've just started ours as we are fed up with the current lot ! good luck
    • Ionkontrol
    • By Ionkontrol 26th Nov 13, 1:13 PM
    • 773 Posts
    • 442 Thanks
    Ionkontrol
    • #5
    • 26th Nov 13, 1:13 PM
    • #5
    • 26th Nov 13, 1:13 PM
    You are getting shafted.

    My buildings insurance is £175 a year.

    4 flats in converted Victorian house in Greater London. Total £700.

    Try Bridle Insurance, they halved what we were paying.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

237Posts Today

1,024Users online

Martin's Twitter