Does anyone have experience of renting on FRI terms?

planimals

We're interested in applying for the tenancy of a house nearby. We've been trying to move for several years -- the kids need their own rooms now they're teenagers -- but we're completely priced out of owning and renting. The house we're interested in has a very low monthly rent that we can afford but there's a catch.

The house is owned by the Crown Estate and so apparently is not subject to the usual tenancy regulations. It needs doing up both internally and externally. I'm fine with that. I can do a lot of it myself. My main concern though is that the lease is on FRI terms. We would be 100% responsible for the condition of the property. So, if a storm knocked the chimney into the roof, the repairs would be our responsibility. 

Does anyone have any experience of renting on FRI terms? Is there an insurance that I can get to cover such disasters? What kind of insurance should I look for? Does FRI ring alarm bells? Or, is it not all the bad?

user1977

planimals said:

We would be 100% responsible for the condition of the property. So, if a storm knocked the chimney into the roof, the repairs would be our responsibility. 

Well, it would be the insurers' responsibility in that example. If the roof needs fixed because it's old and knackered, that's your responsibility.

How long would you be planning to live there? Would the landlord be entitled to end the tenancy in any "no-fault" scenario? It's fair enough paying for repairs if you're going to be there for decades, less so if you risk being kicked out after a year or so.

planimals

It's a long lease and would make the world of difference to us if we got it. Do you know anything about what type of insurance we would need? Would it be stupid to apply for the tenancy not having a professional assessment of the state of the property? If I could afford one, I could send a surveyor round but I don't have that kind of money. 

newsgroupmonkey_

Surely it's just standard buildings insurance?

user1977

newsgroupmonkey_ said:

Surely it's just standard buildings insurance?

Yes, pretty much. Though it's possible the landlord organises the insurance and the tenant reimburses them the premium (that's the normal arrangement for commercial FRI leases).

planimals said:

Would it be stupid to apply for the tenancy not having a professional assessment of the state of the property?

Yes, just as stupid as buying a property without a survey.

JJC1956

Speak to Crown Estates, FRI is not new, CE have probably doing it since the day dot. I am sure they will point you in the right direction.
 On the big London Estates, they insist that you use strict colours of paint to do up the outside, that is why they all look the same. 

planimals

My mistake, it's a crown property but not owned by Crown Estates. The letting agent isn't being much help but I'm trying to track down contact details for the actual body that manages the property.

planimals said:

Would it be stupid to apply for the tenancy not having a professional assessment of the state of the property?

Yes, just as stupid as buying a property without a survey.

Going to plead ignorance here. Do I have to pay for the surveyor up front or is that something the insurance company sorts out?

user1977

planimals said:

planimals said:

Would it be stupid to apply for the tenancy not having a professional assessment of the state of the property?

Yes, just as stupid as buying a property without a survey.

Do I have to pay for the surveyor up front or is that something the insurance company sorts out?

It's nothing to do with insurance. If you want a survey then you pay for it, and they'll want paid either on instruction or immediately after they send you their report.

planimals

…I assume I will need one though to get the insurance. Looks like it's a no-go from the start. Anyone have tonight's lottery numbers?

theartfullodger

Live near to a lot of Crown Estate land (Windsor Great Park etc) and have seen a number of rental properties advertised.  Being nosey & a wicked landlord I enquired: "Standard" (as much as any are) AST, not FRI.

IIRC other crown properties may have other sorts of tenancies.  Eg notoriously Duchy of  Cornwall let's.  A disgrace to that family in the opinion of many.

user1977

planimals said:

…I assume I will need one though to get the insurance.

Where did you get that idea from? You do not need to survey a property in order to insure it.