Leasehold Flat - Fensa

dan19882

Hi,

I'm buying a 30 year old flat which had double glazing windows fitted 11 years ago, by the looks of it the whole block had them fitted together. My conveyancer asked for a duplicate FENSA certificate and the landlords retrospective consent however the vendor has replied that this documentation was not needed or supplied when they bought the property and that I should purchase a legal indemnity insurance policy at my expense.

My conveyancer has asked me for instructions, is this likely to come back to haunt me if/when I sell? Does anyone know how much this policy would cost and how i would go about organising cover?

They've also refused to put up a £400 retention for service charges which i understand is usually common practice. There have not been any shortfalls for the last three years accounts, as at Sept 13 they had £25,000 in a shareholders fund (14 flats) however I know the residents association is planing to replace communal windows and carpets later this year.

Would really appreciate any help!

silvercar

FENSA certification only became mandatory in April 2002, so if the work was done before then they wouldn't have needed to have a certificate.

Richard_Webster

The chances of enforcement by the Council are usually very small indeed so an indemnity policy is a good idea in practice. Normally the seller would be expected to pay for this so it depends on how much you want the flat - how stronfg the seller's bargaining power is. Your solicitor would organise the policy which for a typical flat would cost £50-£100. Specialist insurers do not deal with the genral public.

The retention for the service charge is in general terms a reasonable request. Some managing agents put a contingencies item in their estimated charge that is paid on account by the lessee during the lyear. if when they do the accounts the actual costs are mor ethan expected they can often arrange for the final comfimred aservice cahrge tot bethe sameas the estimate by simply reducing the contingency figure for that year and increasing it for the following year's estimated charge - that way theree is no shortfall. If the managing agent is know to do this and has a good record then it may not be worth insisiting on a retention.

Ther is also the argument that just as ther perhaps ought to be a rention to cover a shortfall what happens if the estimated charge ends up being more that the actual and therefore a refund is due to the seller - should the buyer lodge some money to cover that possibility?