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  • FIRST POST
    • Susan1942
    • By Susan1942 25th Jul 16, 10:23 PM
    • 1,017Posts
    • 179Thanks
    Susan1942
    Building Insurance for Leaseholder flat
    • #1
    • 25th Jul 16, 10:23 PM
    Building Insurance for Leaseholder flat 25th Jul 16 at 10:23 PM
    .I live in a leasehold flat. In January of 2015 the lease was sold and the new Freeholder changed the management company.
    My buildings insurance prior to this was around £260. Following the change over the policy was increased to around £560. Despite raising it with them there was nothing we could other than pay it.
    The renewal is due and is £602 which I am going to have to pay What I am concerned about is that they are charging an administration fee of £19 99. When I multiply that X 42 it means that they are £839.58 which seems an incredible amount of money for this. Previously we did not pay any admin fee. We have little say in anything and the new Management Company are a nightmare. We do have a committee who are in constant dispute with them about many issues.
    I would appreciate any views on this.
    Many thanks Sue.
Page 1
    • Quentin
    • By Quentin 25th Jul 16, 10:55 PM
    • 33,476 Posts
    • 17,354 Thanks
    Quentin
    • #2
    • 25th Jul 16, 10:55 PM
    • #2
    • 25th Jul 16, 10:55 PM
    Consider booting them out


    Google right to manage
    • Susan1942
    • By Susan1942 26th Jul 16, 12:45 AM
    • 1,017 Posts
    • 179 Thanks
    Susan1942
    • #3
    • 26th Jul 16, 12:45 AM
    • #3
    • 26th Jul 16, 12:45 AM
    We have tried to do this previously but the new Leaseholder refuses to communicate with us. Previously we paid the ground rent and the maintenance to our management company. We. now have 2 separate companies to deal with. They simply insist we pay and refuse to negotiate
    • Quentin
    • By Quentin 26th Jul 16, 10:20 AM
    • 33,476 Posts
    • 17,354 Thanks
    Quentin
    • #4
    • 26th Jul 16, 10:20 AM
    • #4
    • 26th Jul 16, 10:20 AM
    Right to manage is exactly what it says - a "right" (you do need to get a majority of the leaseholders to agree)


    So maybe your committee need to get some proper legal advice on going forward if the landlord refuses to co-operate
    • eddddy
    • By eddddy 26th Jul 16, 11:16 AM
    • 5,526 Posts
    • 5,216 Thanks
    eddddy
    • #5
    • 26th Jul 16, 11:16 AM
    • #5
    • 26th Jul 16, 11:16 AM
    As a leaseholder, you can challenge any fees which are unreasonable through the Leasehold Valuation Tribunal. (That should include if the freeholder is paying for an unreasonably expensive insurance policy.)

    See: http://www.lease-advice.org/faq/what-can-i-do-if-i-disagree-with-an-administration-charge/


    Alternatively, you can club together with other leaseholders and take over the management of the property (and then perhaps hire your own management company, who will then take instructions from you about which insurers to use etc).

    See: http://www.lease-advice.org/advice-guide/right-to-manage/
    • Susan1942
    • By Susan1942 13th Sep 16, 8:13 PM
    • 1,017 Posts
    • 179 Thanks
    Susan1942
    • #6
    • 13th Sep 16, 8:13 PM
    • #6
    • 13th Sep 16, 8:13 PM
    We tried to challenge the insurance last year. At the end of the day the Landlord would not even recognise our residents association. They have done so now but they tell us that it is the Landlords decision on who they choose to insure our properties with.
    They tell us that the property was underinsured ! Our Committee are still working at coming to some arrangement but they are not interested. Very frustrating
    About 15 years ago we were going to buy the Freehold We had enough residents to do this Some of us took more than one share to allow the process to go ahead On the night before it was to happen apparently one person who lived here had a mortgage. It fell through at the very last minute At that time I if I recall correctly it was £100.000 The Freehold was sold again but at £1,200.000 so there was no way we could afford to buy it sadly. Thanks for your responses Sue
    • skidderbrown
    • By skidderbrown 13th Sep 16, 9:18 PM
    • 292 Posts
    • 74 Thanks
    skidderbrown
    • #7
    • 13th Sep 16, 9:18 PM
    • #7
    • 13th Sep 16, 9:18 PM
    A company based in Southend on Sea beginning with a P Perhaps?
    • moneypoppy
    • By moneypoppy 11th Jun 17, 10:02 PM
    • 2 Posts
    • 1 Thanks
    moneypoppy
    • #8
    • 11th Jun 17, 10:02 PM
    • #8
    • 11th Jun 17, 10:02 PM
    Hi Skidderbrown - I have problems with a freeholder charging way too much for insurnace (it's gone up 4 x higher than when we moved in, now almost £1000 a year, for a 3 bed ex-local flat! ) and ours IS a company in Southend beginning with P - Pier. Is that who you are referring to? The management are a company called Gateway. They are AWFUL
    • skidderbrown
    • By skidderbrown 12th Jun 17, 12:35 AM
    • 292 Posts
    • 74 Thanks
    skidderbrown
    • #9
    • 12th Jun 17, 12:35 AM
    • #9
    • 12th Jun 17, 12:35 AM
    Yes Moneypoppy that's correct but my management company is a different one and relatively OK.
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