£464 for building insurance

ahfat41

Is this the usual price to pay for 1 bedroom flat above commercial property in London.? Ground rent £200 double up every 25th years. Thanks

GDB2222

A little high perhaps. What does it cover? Is it a high crime area? 

eddddy

As it's a flat - do you mean that's the amount the freeholder is asking you to pay?

Or does the lease say that you're responsible for buildings insurance for your flat, and that's a quote you've got?



Assuming it's the amount your freeholder is asking you to pay, you can check your lease to make sure it's the right percentage of the total premium for the building.

You can also request a copy of the policy, to see if you're paying for cover which isn't required by the lease. 

As it's a commercial property downstairs - I'm not sure how that's generally handled. The policy might cover 'loss of rent' (which might be substantial for a commercial property) and 'business interruption', and it doesn't seem reasonable that you should contribute towards that cover.

user1977

eddddy said:

As it's a commercial property downstairs - I'm not sure how that's generally handled. The policy might cover 'loss of rent' (which might be substantial for a commercial property) and 'business interruption', and it doesn't seem reasonable that you should contribute towards that cover.

I've never heard of anybody attempting to recover loss of rent cover from other tenants. The landlord won't be arranging business interruption cover, that's for the tenant to sort out. 

ahfat41

It's the amount the freeholder is asking. Will need to ask ea to clarify as he said no service charge very odd Not very keen on ground rent doubling up. Is this a fair rent?

Thanks

eddddy

ahfat41 said:

It's the amount the freeholder is asking. Will need to ask ea to clarify as he said no service charge very odd Not very keen on ground rent doubling up. Is this a fair rent?

Thanks

The building will need to be repaired and maintained - you need to find out who is responsible for doing that, and how the costs are allocated.

The EA probably means that a service charge will be collected when required. e.g. If the roof needs repairing, the freeholder will send you a service charge demand (bill) for your share, and once everyone has paid, the freeholder will get the roof repaired.


That might be a good system - or it might be a sign of a disinterested freeholder, who doesn't bother looking after the building very well. Is the building well maintained?


Ground rents that double every 25 years never used to be a problem - but some people are saying that it's becoming an issue for some mortgage lenders.


More generally, it can sometimes be difficult to get a mortgage on a property above commercial premises.

canaldumidi

Get out the lease and read it. Don't rely on what an estate agent told you.