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leasehold

gary_smyth
gary_smyth Posts: 2 Newbie
in House buying, renting & selling
I'm thinking of buying a house with a 900 year lease. My question is regarding buildings insurance. Is it my responsibilty to insure the building.

Thanks

Comments

  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Depends on the terms of the lease. For a flat, normally no, for a house, normally yes.
  • Surrey_EA
    Surrey_EA Posts: 2,051 Forumite
    Tenth Anniversary 1,000 Posts
    The buildings insurance is almost certainly taken care of within the service charge.
  • TrickyDicky101
    TrickyDicky101 Posts: 3,535 Forumite
    Part of the Furniture 1,000 Posts
    Surrey_EA wrote: »
    The buildings insurance is almost certainly taken care of within the service charge.
    That's quite a leap seeing as OP never mentioned a service charge.
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If the house is self standing then normally you would buy the insurance yourself.
    Changing the world, one sarcastic comment at a time.
  • lfc321
    lfc321 Posts: 740 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    We're in exactly your situation and are indeed responsible for our own insurance.

    (In any case, our ground rent is only £1.40 per year - so we could hardly expect that to include insurance).
  • Surrey_EA
    Surrey_EA Posts: 2,051 Forumite
    Tenth Anniversary 1,000 Posts
    TrickyDicky101 wrote: »
    That's quite a leap seeing as OP never mentioned a service charge.

    I didn't say it would be definitely the case, but the considerable majority of leasehold properties have a service charge agreement of one sort or another, which takes care of the buildings insurance (possibly amongst other things), to avoid the crazy situation of each individual leaseholder attempting to insure their specific part of the building separately.

    A leap, yes, but not exactly a massive one.
  • skintpaul
    skintpaul Posts: 1,510 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    In my experience, Landlord usually arranges BUILDING insurance, and recharges to lessee. CONTENTS are lessee's responsibility.
    breathe in, breathe out- You're alive! Everything else is a bonus, right? RIGHT??
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Surrey_EA wrote: »
    I didn't say it would be definitely the case, but the considerable majority of leasehold properties have a service charge agreement of one sort or another, .
    That is true of blocks of flats.

    Very unusual with a leasehold house.

    So yes, read the lease to find out, but in 95% of cases (leasehold houses) the leaseholder would insure.
  • gary_smyth
    gary_smyth Posts: 2 Newbie
    It's a house with very low yearly ground rent. Solicitor says i need to insure building, so that's what i'll do.

    Thanks
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