Help with Leasehold Garage

lukedmartin88

Hoping someone can offer some advice.

I purchased a new build property in 2012 which came with a leasehold garage under a coach house. My garage being the only one below the coach house and having no electricity to it.

The garage is on a peppercorn rent for 999 years. A clause within the lease states that I am to pay 10% of the leaseholders annual buildings insurance premium. The leaseholder being the owner of the coach house.

I am fully aware of my responsibility under the terms of the lease and do not dispute that. What I am concerned about however is that the owner of the coach house bought it as a buy to let. thus, resulting in him having the need for Landlords Insurance.

Is it fair of him to expect me to pay 10% of his landlords policy which comes with a much higher premium to cover extra risks involved and to cover himself for different situations, such as non payment of rent, malicious damage caused to the property by his tenants and eviction of squatters plus a limited contents cover for kitchen and bathroom units.

Currently the premium he has sent me is £70 more than the combined buildings/contents cover for my 3 bed semi.

I have arranged for a financial adviser to quote for a standard buildings policy for his property which is coming up at just under £100 cheaper!

Any advice on this would be much appreciated.

phill99

If your lease is saying 10% of 'buildings insuramce' then you are only liable to pay that. You need to ask him to get the insurers to breakdown the 'buildings' element seperately from the other landlords risks and pay the 10% on the buildings element only.

HappyMJ

Tell him you'll pay 10% of a comparable buildings insurance quote and leave it at that. Contents and his landlord liabilities are his responsibility. If he wishes to chase it he can take you to court for the money which you could quite easily defend.

My garage is also under another house on a 999 year lease with 20% of the neighbours "buildings" insurance to be contributed by me to them. I've never paid it. They've never asked.

Cornucopia

If you were to pay him what you think is fair, then he would have to sue you to enforce the contract (which he may well not do).

You'd have to consult a property lawyer, but I'm wondering if there's something that could be done through the LVT.

Has he sent you a copy of his insurance schedule as proof of payment? Can you factor-out the Landlord-specific bits & pieces?

You don't mention the absolute figures in your post, but are we talking about a difference of £10 a year, here? I'm wondering if it's worth making a fuss about a relatively small amount?

phill99

Cornucopia wrote: »

If you were to pay him what you think is fair, then he would have to sue you to enforce the contract (which he may well not do).

You'd have to consult a property lawyer, but I'm wondering if there's something that could be done through the LVT.

Has he sent you a copy of his insurance schedule as proof of payment? Can you factor-out the Landlord-specific bits & pieces?

You don't mention the absolute figures in your post, but are we talking about a difference of £10 a year, here? I'm wondering if it's worth making a fuss about a relatively small amount?

Lawyers? LVT? Talk about using a sledge hammer to crack a nut.

You just need to tell him you are only required to pay the buildings element. End of.

Cornucopia

Yes - I realised by the end of my post that we were probably only talking about £10 per year, and didn't bother to go back and correct it.

lukedmartin88

Thanks for your help, you have pretty much confirmed by thoughts on this, the difference for my 10% is roughly £10pa but he hasn't requested any amounts previously. He is backdating the payment to 2012 which tots the difference up!

On another note, just reread my lease and it states he is responsible for repairs. If he peruses me for the full amount, could I request he reimburses me for a repair I had done to the garage door? I've never had any intention of previously.

eddddy

lukedmartin88 wrote: »

...
On another note, just reread my lease and it states he is responsible for repairs. If he peruses me for the full amount, could I request he reimburses me for a repair I had done to the garage door? I've never had any intention of previously.

Does it say...
1. He is responsible for repairs, or
2. He must reimburse you for repairs

If it's 1, you should have given him the opportunity to do the repairs first.

But there's nothing to stop you trying to claim from him...