What happens if the freeholder doesn't insure a property?

rrwfotr

Hi does anyone know what rights a leaseholder (of flat) has if the freeholder does not bother to insure the freehold property. Also is there any rights a leaseholder has with regards to being charged silly maintenance charges???

cattie

Why not give these people a call for advice. They are a government funded agency who offer free advice on residential leasehold property issues. http://www.lease-advice.org/newintro.htm

hazeyj

Call your solicitor who you bought the leasehold property through. There will be a clause in the lease if the freeholder ever ceases to exist for whatever reason. This is a very serious issue as if your mortage company get wind that the building insurance is not being paid then they can recall the mortgage funds

All leaseholders can demand to see up to date accounts and ask to see proof of work done etc.

Meeten

I am assuming that you as a leaseholder have paid the freeholder for the cost of insurance?

If so, and there is no insurance, then there is even fraud to consider

There should be some form of insurance, and if ther eis none in place, then I am sure it will break the covenants of mortgages that have been put on the property. I would DEMAND to see the insurance documentation (as is your right) and if queried, tell the freeholder that your solicitor wants to see it as you are gogin to sell your place. (the new buyer will wnat the insurance documents - in case he asks!)

Doozergirl

You must take out your own insurance if are not sure the freeholder is doing it for you. God forbid, if anything happens to the property, you owe the bank a lot of money and have no asset to show for it.

In terms of what you can do about service charge, you can either dispute it, assert your right to manage the property yourselves or force the sale of the freehold. You can only do this if the majority of leaseholders agree - you will have to seek legal advice as a collective. The link given above is great but you'll find that you will probably have to appoint a solicitor.

hazeyj

Noooooooooooo. Unfortunately taking out seperate building insurance as well as the freeholder paying building insurance (if they are) will invalidate the building insurance totally. I doubt that the freeholder would not insure the building but you do need to seek legal advice immediately...pref from the sol who you bought the property with as they will have details of who the building was insured with at the time of your purchase...you can then call them to see if it is still insured.

I cant belive that you have gone three years without seeing any sort of documents relating to this. Who has been paying the ongoing maintenance charges, ie electricity etc for common parts, does it ever get cleaned? Has the building been maintained? Unfortunately you cannot force a freeholder to sell the building to you either. Is the freeholder also the management company? Do give us an update.

As I said before insurance is a very tricky business and please do not go ahead with purchasing your own insurance (pointless anyway if only one leaseholder does it..you would all have to do it) untill you have spoken to your sols.

hazeyj

You will have a copy of the insurance docs that came with the building when you bought it..see if you can dig it out. The mortgage co would have insisted on seeing this before they released any funds. Also was does it say in your lease? Whose duty to insure if the head landlord should fail to exist?