Still having problems with sale - Criss cross lease & Building insurance

kari001

Hi again

I asked for help back in December with regards to queries raised by the solicitor of the potential buyers of my ground floor flat.

Most of the queries have been dealt with apart from one ~ Building Insurance.

Background: I own a Ground Floor Flat in a converted property. There is a first floor flat above me which is tenanted. The property has a Tynesside, or Criss Cross Lease. So I am the Leaseholder of the ground floor flat and the Freeholder of the upper flat. I bought the flat 15 months a go as a repossession and so had no knowledge of my fellow Freeholder or of any buildings insurance in place. My solicitor at the time advised that I insure my flat separately and then contact the other Freeholder to discuss Insuring with the same company etc.

The first floor flat is tenanted and I could not contact the other freeholder until August 2012. He wasn't very co-operative and only gave me his mobile number as a way of contacting him if I was in need.

Now, due to illness I need to sell my flat. I have a buyer in place but they can't get a mortgage due to the other Freeholders Buildings Insurance being invalid ~ he states that he is living there, but he isn't and has tenants living there, and it is with a different Insurance Company to my own.

I have tried repeatedly to contact him about this ~ his girlfriend answered the phone on the first attempt, I told her of the situation, she agreed that it was 'silly' not to have valid insurance and said they would get the correct insurance over the weekend.... and that was 2 weeks a go. Since then he has ignored my calls.

I have tried to take insurance out for the building but I need information from him ~ DOB, tenancy agreement information and an address for him. Again I have left messages advising him of this and again this has been ignored. The Insurers are also aware that I am selling so would be cancelling the policy once the sale has gone through, this would leave the whole building not insured again...

I am now at my whits end! The lease states that : At all times be insured by the same insurer on the terms of the same policy.

So, we are in effect both in breach of covenant. Myself unwittingly him knowingly.

Regardless of the sale I am also not happy living and owning an uninsured property so I would really appreciate advice..... As his invalid insurance also invalidates my insurance.

Apart from asking my Solicitor to write a strongly worded letter to him (and hope he gets it, as the only address I have for him is the first floor flat) Is there anything else I can do?

Richard_Webster

So are you saying that the leases say that there should be one insurance policy for the whole building or that you each have your own separate insurance?

If the latter your solicitors should be bale to deal with points about the other person's insurance by you paying for a one-off contingent buildings insurance policy - this will cost around £200-£300.

propertyman

I agree

However there is some confusion, he is the freeholder of your flat, which is not let out.

You should be insuring his flat, and presumably under the leases paying each others premiums.

If he has in effect insured his own flat, then make it clear that all he need do is insure you in a policy that you will arrange for your flat, and you will pay the premium.

Trying to insure the whole building likely creates a new problem as he has insured his flat , so I suggest you resolve it as above an contact a local insurance broker who likley has had to arrange similar types of insurance.

kari001

I am totally confused by this now

Richard : The lease says At all times be insured by the same Insurers on the terms of the same policy. We currently have separate policies. I insure mine and he insures his, although they say his is invalid as he says he lives there but he doesn't he has tenants.

Propertyman: So, if I had to insure his flat I would need to give information about his tenants... tenancy agreement etc, which I don't have. The property isn't in Tynesside, so I doubt whether many local insurance companies would have dealt with it.

Richard_Webster

At all times be insured by the same Insurers on the terms of the same policy.

Is that exactly what the lease says? And is that one of the lessee's covenants, rather than that of his landlord/freeholder?

You could have a joint policy I suppose or it might mean that you both have to insure with the same company to avoid arguments between insurers.