Leasehold flat - insurance question

JennyW_2

We plan to purchase a leasehold flat off my in-laws (997 years remaining). It is a detached house which was extended and split/converted into two flats many, many years ago. They currently live upstairs and we will live downstairs.

There will be no service charge in our contract (in the past my husband has always helped his father with any maintenance on the house) so his solicitor will draw up a contract stating that repairs/costs will be split. For example if the guttering needs painting or repairing or the anything downstairs needs fixing (ie our off-street parking area and fencing) my husband and his father will do it between them. This we are all in agreement with.

Each flat of course has it's own utility services and separate bills and my father in law has stated that each flat has it's own contents and buildings insurance - is this quite straightforward to arrange? They've obviously never had problems in the past but just wondering if there is anything I need to know in advance? Many thanks.

Meeten

I think that a SINGLE buildings insurance is what you require.

If each has buildings insurance, then you will be paying twice on the same cover. My suggestion is to get a single buildings insurance (and split the cost), and then get individual contents insurance.

HTH

seabright

You need a buildings insurance policy which covers the entire building (and pay half each), and contents cover to cover each seperate flat (and each be responsible for your own contents policy).

Lenders insist on the whole building being covered by a single policy - what if there where a fire and your in-laws had forgetten to renew their policy? You'd only get 1/2 the rebuilding cost - not enough to re-build, but you'd still owe the lender all the money.

JennyW_2

yes I understand - thank you. I will speak to them about it.

micheleen

I thought it was usual for the freeholder to arrange the buildings insurance and then split the cost between each flat

dander

On my last flat I had to have buildings insurance for just my flat. It's a pretty unusual thing to have to do, and most companies won't touch it. It had to be done through the mortgage company and added around £10 a month to my mortgage bill.

oscar67

I live in a maisonette and am buying another where there is no maintenance charge. The buildings insurance is arranged separately by the individual flat owners. You will need to arrange your own buildings insurance, but also to include contingency insurance (insurance against the other flat owners not having insurance or being under insured). No doubt it is better to have one buildings insurance which everyone contributes to, but it depends on the requirements of the lease.

JennyW_2

we've sorted it now thanks. For the sake of convenience and peace of mind, my father in law will insure the whole building and we'll go half on the costs.

Just leaves us to sort out contents for the separate flats.