First Tier Tribunal (Property Chamber) - Help!!!

km1423

Hi Guys/Gals,

I want to go to the First Tier Tribunal - Property Chamber.

Have been having nightmares with my Freeholder (Ashby's Eling Brewery Co Ltd) who:

Demands Buildings Insurance 6 months before it's due.

Isn't reasonable for Buildings Insurance Charges. It would cost me nearly £500 for £150,000 worth of cover. I settle for less, knowing that my building is under insured. So I pay £270, for £96,000 of cover.

Depsite writing and writing, still hasn't sent me the Cover Policy/Schedule - only the renewal document, and that took nearly 5 months to get.

I pay a Management Charge of £120 pa for him to "communicate with tenants and arrange Buildings Insurance".

The demand for the Buildings Insurance will be due again on 31st December 2016, and I want to go to Tribunal as I feel that the FH is not being "reasonable".

How can I get this ball rolling.

Thanks in advance.

anselld

I am not sure how you are able to select a level of cover for buildings insurance.

Normally the Freeholder would select cover for the building as a whole. The insurance valuation (rebuild cost) would be established every so often, e.g. by a RICS surveyor. The insurance would be selected, e.g. by comparing three quotations from various insurers. Then the costs would be apportioned according to the lease.

I really don't understand how figures can just be picked out of the air without any basis and how you can "select a level of cover" below the building valuation.

What does the lease say regarding management fees?

How many other leaseholders in the building are affected?

km1423

The FH contacts me each year to remind Buildings Insurance is due, and letter says that it is MY responsibility to ensure that I have adequate cover.

To get an idea of what my property would cost to rebuild I used an ABI rebuild calculator, putting in the criteria for my property (flat in converted house) hence the price middle ground of £150,000 for a good rebuild or £180,000 for a superior rebuild.

The £500 premium is what the FH will charge me for £150,00, however when searching online the cost is substantially less

I've checked my Lease, and it is vague, at best about management fees and there is no mention about when Building Insurance should be paid or the demand for 6 months in advance.

There are only two flats in the building - Me and one other property.

I do not want my property under insured, but the premium charged is very expensive.

I have offered to purchase Buildings Insurance and submit paperwork - rejected

Asked FH if he was an Agent for the Insurer - denied.

FH has a block policy, and has advised that although premium is not due until May, the anniversary of the policy is December.

I do not have Policy/Schedule - I know that FH must by law supply this.

I will pay a high premium to ensure I have adequate cover and I pay service charge which includes arrangement of the Insurance - A hefty price.

Hence why I would like to go to tribunal, as the FH is not being "reasonable".

anselld

km1423 wrote: »

The FH contacts me each year to remind Buildings Insurance is due, and letter says that it is MY responsibility to ensure that I have adequate cover.

This is fundamentally untrue.
It is the Freeholder's responsibility to ensure adequate cover for the building.

How else could it work? If you and the other leaseholder had widely differing opinions of the cover required how would it be decided?

Have you actually seen the details of the policy? Does it equate to the whole building and does your share equate to 50% of the cost, etc.

Have you spoken to the other leaseholder? Any potential tribunal case would carry more weight if both leaseholders supported a case.

km1423

This is fundamentally untrue.
It is the Freeholder's responsibility to ensure adequate cover for the building.

It may be fundamentally untrue - but it is fact. It is down to me to ensure I have adequate cover, and has been forever.

The premium I paid in May is strictly for my property, I asked that. I haven't seen the details of policy - information I have been sent says "Renewal". It's all seems very shady. I will speak (email) the other leaseholder.

I would like to get to the Tribunal, any ideas how to start and which forms to complete.

Advice very much appreciated.

Cheeky_Monkey

Looks like you've been mugged off from the very start then :eek:

As a leaseholder, you are only responsible for contents insurance and even that is for you to decide whether you get it or not.

As has been said, you stand a much better chance at a tribunal if you join together with the other leaseholder rather than try to do it on your own.

anselld

What does the Lease actually state regarding Buildings Insurance?

marksoton

km1423 wrote: »

I haven't seen the details of policy - information I have been sent says "Renewal". It's all seems very shady. I will speak (email) the other leaseholder.

I would like to get to the Tribunal, any ideas how to start and which forms to complete.

You're jumping the gun. How can you possibly expect a successful outcome at tribunal if you haven't even got the pertinent information the freeholder has?

You need to see that policy and you need to see exactly what you're being billed for.

I agree with others, any subsequent tribunal after you've got the paperwork will be stronger in tandem with the other leaseholder.

km1423

Thanks everybody,

(marksoton) I have the policy info from 2014/15, not the current info, except that I know I have paid for £93,600 worth of cover, but under insured. The renewal paperwork I have been sent does give basic info, ie excess etc, however it isn't the proper policy information.

(anselld) I have checked my Lease, and will be rechecking this. It does mention Service/Maintenance charges, but nothing about Buildings Insurance.

(cheekymonkey) - You are right, but I want to rectify this mess now.

I am going to contact the other Leaseholder and hopefully together we will stand a better chance at the Tribunal.

I will let you all know how this turns out - it may be a while.

marksoton

km1423 wrote: »

(marksoton) I have the policy info from 2014/15, not the current info, except that I know I have paid for £93,600 worth of cover, but under insured. The renewal paperwork I have been sent does give basic info, ie excess etc, however it isn't the proper policy information.

With respect, you're being neither clear.concise or accurate. All the thing's i'd expect at a tribunal.

You need to change that to my mind.

km1423

Message received, and you are correct. It's a bit bewildering and not something I have ever had to deal with before - I understand no excuse and I need to be properly prepared.

I have a copy of my Lease, and have the Renewal Paperwork also. I also have all comms from the FH too.

Thanks to all.