Need some advice- is it legal or not?

Fire_Fox

osman2010 wrote: »

thank you for your posts.
The gas and electricity is with Switch 2 and he owns 35% and pays rent on the rest. He pays for what he uses which obviously depends on how much he uses, what im saying is that on top of his bill he has to pay an extra 40("insurance") every month. he was told about the gas and alectricity, he just wasnt told about the extra charge until he received his first bill. when he called the energy people up they told him that its tough because the housing people should have told him when they didnt. He already pays a service charge of 150 a month. i put down that it was a 2 bed because thats what is written on the bill.

This thread is like pulling teeth - you really are not explaining yourself very clearly. Insurance for what?? We are not mind readers, your BF needs to write to the housing association and ask what he is insuring. Buildings insurance is payable on leasehold properties, mine is £85 a year paid as a one off. Why is your BF paying a £150 a month service charge? That is very high, does the building have lots of lifts, communal heating (i.e. corridors), a gym, concierge, substantial sinking fund, extensive gardens?

This website explains the rights and responsibilities of a leasehold property, but your BF also needs to read his long lease and any other documents supplied by his solicitor. LEASE also have a free telephone advice line, but they will not be able to help you unless you are MUCH more clear about what you are being charged. Also have ALL your documents in front of you when you call.
http://www.lease-advice.org/publications/

Cardew

I thought most of these shared ownership schemes were shared freehold - not leasehold. You pay a rent for the share you do not own, with a guarantee to buy the remainder after x years.

However regardless of freehold or leasehold it will still be necessary to insure the property, but building insurance is normally included in the service charge. So just what is the £40 for?

Bearing in mind the flat is in London, so £150 a month is not high - especially if there are some security arangements.