ground rent company telling my daughter she has to get house insurance from Aviva

barrowfordclaret

My daughter bought her first house in January and she got building and contents insurance from Nationwide. However she has now got a letter from her ground rent company saying she must get insurance from Aviva and if she doesnt she will be fined. She wrote a letter back saying she has got it from Nationwide and they now say she has to pay £60 and get it from Aviva in the future and if she doesnt pay within 14 days they will take her to court. I have never heard of this before, can they make her get insurance from Aviva?Thanks

hazyjo

House or flat? Why ground rent? Is it a leasehold house?

Jx

barrowfordclaret

Its a house and its leasehold. She also had to pay 30 years in advance. Thanks

Guest101

I'm pretty sure contract like this are unenforceable. So I would tell them to go right ahead.

However, what is the property, does she own the freehold if house?

We need more info?

Guest101

barrowfordclaret wrote: »

Its a house and its leasehold. She also had to pay 30 years in advance. Thanks

30 Years in advance? Why did she do that?!

sleepless_saver

See pages 26-29 of government booklet for long leaseholders which covers this issue in detail.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/9432/leaflet.pdf

barrowfordclaret

Its a terrace house worth about £80k. I asked her the same question why did she pay ground rent for 30 years and she just said her solicitor sorted all that out. I've told her to ring her solicitor up but she is scared how much they will charge her.
Thanks all so far

barrowfordclaret

She has bought the house with a Mortgage and is not renting it btw

Guest101

barrowfordclaret wrote: »

Its a terrace house worth about £80k. I asked her the same question why did she pay ground rent for 30 years and she just said her solicitor sorted all that out. I've told her to ring her solicitor up but she is scared how much they will charge her.
Thanks all so far

What she has already paid should be sufficient to answer her questions

barrowfordclaret wrote: »

She has bought the house with a Mortgage and is not renting it btw

She has bought the lease*

Guest101

Initially I thought this was a flat, or freehold house.

As a leasehold house, the freeholder can specify which insurer is used for the house insurance, the contents is upto your daughter.

The 30 years in advance seems silly, the company may liquidate tomorrow, then what will she do?

barrowfordclaret

So basically she is tied to which insurer the freeholder tells her for building insurance. Aviva is 4 times dearer than her present insurer. :eek: Thanks for all the advice, seems a bit of a rip off to me. As long as its insured for the rebuilding cost what's it matter who its insured with. :mad:

Thanks all