Freehold issue on Flat

Noodles7791

I think the reason I've been worrying about it is the solicitor at the time advised me to dispose of the freehold once it had served it's purpose. I will dig it out and go through it with a fine tooth comb

eddddy

Noodles7791 wrote: »

Also the freeholder is responsible for insurance. I have my flat Insured properly but does the guy downstairs? Now he's cut off communication I have no way of finding out.

If the freeholder is responsible for insuring the building....

...that means you and your brother as joint freeholders are jointly responsible for insuring the building.


If you and your brother haven't fully insured it - if the building burns down, your neighbour is likely to sue you for negligence, to cover the rebuilding cost.

You should get the insurance sorted.

Noodles7791

Hi Eddddy,
This is a very good point.

Thinking this over last night I believe we must be responsible for the insurance of his flat.

I assume once I've arranged insurance I can then bill him for it? Can this include a modest uplift for my time or should I just ask for what is owed?

Seeing as the guy is not getting back to me I think the best way forward is to send a letter recorded delivery and give him some time to respond.

If he refuses to pay what are my options?

Thanks again people

deFoix

Noodles7791 wrote: »

Hi Eddddy,
This is a very good point.

Thinking this over last night I believe we must be responsible for the insurance of his flat.

I assume once I've arranged insurance I can then bill him for it? Can this include a modest uplift for my time or should I just ask for what is owed?

Seeing as the guy is not getting back to me I think the best way forward is to send a letter recorded delivery and give him some time to respond.

If he refuses to pay what are my options?

Thanks again people

Just to be clear you and your brother are resposible to insure the WHOLE BUILDING in accordance with the terms of the lease.

Normally you cannot include admin fees in a leasehold service charge unless the lease specifically allows for it. You need to follow the terms of the lease and invoice properly for the charges to be valid.

If he doesnt pay you should seek legal advice but basically you would take him to court.

PasturesNew

Just to be clear you and your brother are resposible to insure the WHOLE BUILDING in accordance with the terms of the lease.

This.

The freeholder insures the WHOLE BUILDING in one policy - the structure - against a variety of events occurring.

This insurance is for THE BUILDING - not part, not just your bit, all of it. The walls, roof, services, walls..... the building.

Inside each flat, the owners insure "their stuff".

In the event of, say, a major fire, the freeholder's insurance pays for the whole building to be put right under one freeholder/buildings policy ... and the individual flat owners then look at their personal insurances to see if their sofa and rugs were covered.

Right now, if you have only insured your flat - and the building burns down, you'll have three other owners banging on your caravan door demanding you pay for it all to be demolished/cleared and rebuilt at your cost as you'd failed to insure the whole building. If you have been able to only insure your flat, then that sounds more like you only have your sofas/rugs covered in the event of catastrophe and have misunderstood what you thought you were buying when you bought insurance.

You urgently need to read all the papers and understand the difference between a freeholder and a leaseholder - and who does what and how/if it's reclaimed from the others etc etc

As you bought the freehold, you're confusing your two positions and possibly not doing things you are legally responsible to be doing.

Noodles7791

Thanks Boler,

I forgot to mention another Landlord owns the other 2 flats (4 in total) He recommended the insurance company I use so I believe 3 flats are insured individually (not ideal I read earlier in this thread) with the same insurance company.

PasturesNew

Noodles7791 wrote: »

Thanks Boler,

I forgot to mention another Landlord owns the other 2 flats (4 in total) He recommended the insurance company I use so I believe 3 flats are insured individually (not ideal I read earlier in this thread) with the same insurance company.

The freeholder should be operating as one entity.... the freehold is one item that you share ownership and responsibility for alongside the other chap. In all dealings regarding the freehold you should be having a documented meeting/agreements over what's being done. You can't all be doing bits and pieces alone.

What if, say, the building burnt down and your policy paid out, but his didn't.... you can't rebuild half the building.

You need to resolve this. It seems the other chap might also be "making it up as he goes along and is a bit lost too"

Noodles7791

Hi Pastures,

Thanks for taking the time to reply.

Yes you're correct in saying the freehold is one item as a company based in London used to own the freehold to many flats in our area. They would handle the insurance for the block and then bill the individuals. Over time as leases need to be renewed they have sold them on, to me this is the only real value in a freehold.

We have a commercial Landlords policy (on 3 flats) although on a separate basis. I think this maybe more common as Freeholds are sold to individuals rather than companies owning them.
I will however be checking we are covered correctly.

I'm pretty sure the owner of the two next door isn't making it up as he goes along, he has a large portfolio of property and is a little more savvy than me.

bouicca21

Are you sure you and your brother own the freehold between you? It's beginning to sound as though this might be a share of freehold set up that involves more people than just you two.

Either way it seems clear that you need to get a far better grip on your rights and obligations.

Noodles7791

Hi Bouicca, Yes. Just me and my brother on Freehold.