Freehold house, leasehold garage under coach house

mandy87w

Hi I’m interested in purchasing freehold terraced house which is attached to coach house with the garage (leasehold) under which will belong with the house I’m interested in. My question is the regarding the garage and insurance, who is liable for contents/building for this? Would this be a separate policy to the terraced house and who is liable for damage/repairs (there is no electric in there just a very small window). Would I need to obtain proof that there is insurance for this before purchasing? I don’t want to proceed weeks down the line. Estate agent said there is estate charge of £175 that covers for the garage and the terraced house maintenance. Please don’t say oh it’s in the deeds. Thank you in advance.

user1977

Generally the freeholder arranges the buildings insurance. Contents insurance is optional, and a job for whoever owns the contents. Your solicitor checks out the details of the insurance, it's not something you need to worry about before you put in an offer, if that's what you're asking.

hazyjo

Unfortunately there isn't a one size fits all.

I had a similar freehold house, leasehold garages, and the estate charge covered insurance. Sometimes the coach house owner will be responsible. We don't know who the freeholder is. Do you?

mandy87w

I don’t know who the freeholder is unfortunately.

secla

i used to live in a similar house where there was a flat above a row of garages, the flat owner insured the garages (not the contents) and my deeds contained what is called a peppercorn rent

RM_2013

We are in the process of buying a freehold house with a leasehold garage under a coach house.  Our solicitor is yet to do the necessary searches but the vendor advised us that the owner of the coach house is responsible for buildings insurance.  There is a nominal “rent” payable towards the upkeep I believe in our car 

eddddy

With coach houses, there are generally 2 setups:

1. The coach house is a freehold house - with the garage(s) leased out. 
Your freeholder would be the person that owns the coach house - and is likely to be the person who lives above the garages


2. The coach house is essentially a block containing leasehold flat (or flats) upstairs plus leasehold garages underneath.
In that case, the freeholder might be the original developer of the estate, or a big investment company, or similar.


During the conveyancing process you will find out who the freeholder is, and your solicitor should ask for a copy of the buildings insurance policy. Your lease will probably say you have to contribute to the cost of buildings insurance.

But, at this stage, you can ask the seller - they should know who the freeholder is, they should know how much they pay towards buildings insurance, and they may even have details of the insurance policy.

(And/or you can download details of the freeholder from Land Registry.)


But that all relates to buildings insurance - you would arrange your own contents insurance.

(And the lease will specify lots of other 'rules' - like what you can use the garage for, who has to maintain the garage, how maintenance costs are split, etc.)

RM_2013

secla said:

i used to live in a similar house where there was a flat above a row of garages, the flat owner insured the garages (not the contents) and my deeds contained what is called a peppercorn rent

This is exactly the situation on the house we are hoping to buy.  According to the vendor they’ve never actually paid any of the peppercorn rent.  The coach house is above a block of 3 garages, one belongs to the resident of the coach house and the other 3 to the 3 terraced houses next to the coach house. However not sure if things will change with a new owner as the coach house owner is sold STC.
i guess our solicitors will be able to advise 

NameUnavailable

You need to see a copy of the lease for the garage, that will (should) state what your liability is towards insurance and maintenance.

Usually you would pay a proportion of the buildings insurance and would also have to pay for any necessary maintenance (repairs to the structure, tarmac outside (if any) etc.

NameUnavailable

RM_2013 said:

secla said:

i used to live in a similar house where there was a flat above a row of garages, the flat owner insured the garages (not the contents) and my deeds contained what is called a peppercorn rent

This is exactly the situation on the house we are hoping to buy.  According to the vendor they’ve never actually paid any of the peppercorn rent. 

I don't think anyone has actually ever been asked to pay their peppercorn to the freeholder - it means literally one peppercorn! The idea is that it's essentially nothing but there has to be something.

mandy87w

Thank you for your responses! The coach house has two garages with a drive through opening to the back of car park in between both of the garages. The other garage is same that it is attached to another house (it’s one big row). Now I’m thinking what if other residents using car park drives or damages either garage. I think the estate agent as well has incorrectly measured some of the rooms as comparing with previous sales on same road.