Leaseholder wanting to sublet flat

Goonerannie

Hi

I live on the first floor of a conversion and I own the leasehold. My freeholder lives in the ground floor flat and pays for buildings insurance and I pay half as per the terms of my lease. I want to sublet my flat, will the insurer agree that I can sublet. I have asked my freeholder to advise the insurance company that I will be subletting. Can they refuse to insure and what happens if they refuse? Thanks.

Emmia

Plenty of people let leasehold flats as landlords - is there something in your lease that prevents this? And if you have a mortgage do you have consent from your lender, or a buy to let mortgage?

You should still ensure the ground rent and service charges (if any) are paid by you, directly.

DullGreyGuy

Goonerannie said:

I live on the first floor of a conversion and I own the leasehold. My freeholder lives in the ground floor flat and pays for buildings insurance and I pay half as per the terms of my lease. I want to sublet my flat, will the insurer agree that I can sublet. I have asked my freeholder to advise the insurance company that I will be subletting. Can they refuse to insure and what happens if they refuse? Thanks.

Assuming he is buying the proper Block Insurance then the insurer won't care too much because no matter if its the leaseholder or tenant, they are always going to be covering people unrelated to the insured and thats the main hurdle.

If he's incorrectly buying Home insurance then there is more likely to be broader problems when they become aware its multiple dwellings

user1977

What does the policy say about it? I wouldn't start contacting the insurer unless there's actually a need to do so.

eddddy

Does your lease allow subletting (with the freeholder's consent)?

If so, the freeholder's block building insurance should also cover subletting.

If your lease allows subletting, but for some reason, the freeholder's block insurance doesn't, then the freeholder 'is in the wrong' and will have to upgrade their insurance.


It might be sensible to ask the freeholder for a copy of the buildings insurance policy anyway. You might want to see details of 'loss of rent' cover, excesses, etc.