Freehold & Leasehold Building Insurance

sellparttime

I am about to purchase a freehold upstairs flat and my husband is purchasing the downstairs leasehold flat (separate title deeds).

There are currently tennants in the leasehold flat which we may keep, not entirely sure yet.

What sort of building insurance would we need? Does the type of insurance matter whether we let the leasehold or not?

Thanks for any help or advice?

SPT

Tim_Dodd_2

Take a look at Landlords Insurance. I took the following extract from the Decision Finance website:

"As a landlord, you are effectively using your property as an extra source of income - and this needs to be protected. A normal home insurance policy is not valid when you are taking an income from the property. A residential landlord policy is what is required."

It looks as though you'd need specific landlords insurance.

It may be worth speaking to a few insurers on the phone to see if you can get a discount based on two important pieces of information:
* you are in control of the upstairs and downstairs
* you are in the market to buy two policies

This may put you in a strong position.

Here's the Deicision Finance information: http://www.decision-finance.co.uk/landlords_insurance_guide.html

sellparttime

Thanks Tim

andywall

I can't answer your point on the insurance but I am surprised that the upstairs flat is the freehold. This is what is termed a 'floating freehold' as usually freeholds are connected to the ground. Presumably your freehold will include the lease on the downstairs flat which would in actuality mean that you own the freehold on the downstairs flat as well and your husband would own the lease(hold) on it?

You should ask you solicitor about this as 'floating freeholds' can often be problematic.