question about buidlings insurance on leasehold

FTB_3

Ive recently purchased a grade II listed house that is leasehold. The purchase was on the shared home ownership scheme. I have purchased 30% share while the housing association will own 70% share with which they will charge me rent. I haved been informed that buildings insurance is £52 a month.

Do I have a right to search the market for a more competative insurance provider or do I have to stick with the insurance company the hosuing association has selected?

cattie

I think you'll find you have to go with the buildings insurance arranged by the housing association.

It's common on leasehold properties for the freeholder to arrange the buildings insurance, so there is nothing unusual in the housing association doing this in your case.

divadee

I used to live in an ex-council flat that was leashold and the council as the freeholder used to arrange the buildings insurance and you arranged your own contents.

I think it is standard practice in these things for this to happen

Han_naH

I own a leasehold flat, and they too insist on their own insurer. Of course I completely ignore this, and insure elsewhere, for 25% of the cost. If it burns down in a feak fire, the insurer pays, so what's the problem I say?

However, you are actually paying rent, and if you refuse to pay their insurance, then ostensibly they will chuck you out, based on the wording in the tenancy agreement. You should look at the wording and ask a solicitor. Pay him if necessary, because buildings cover should only be about £100 per year, not £600+

And anyway, if they hold 70%, do they pay 70% of the premium?

greedwatchuk

oh dear oh dear i've been dealing with crooked companies like this for years.Ask for a quote from an independent insurer and threaten to take them to court for overcharging if its alot cheaper.Any problems get legal advice.Also check your agreement carefully you may have signed something they can hold you to inwhich case you have a case under the unfair contract terms act etc.A good lawyer will fight your case well.Good luck

Woby_Tide

I own a leasehold flat, and they too insist on their own insurer.  Of course I completely ignore this, and insure elsewhere, for 25% of the cost.  If it burns down in a feak fire, the insurer pays, so what's the problem I say?

I don't understand that, you are paying buildings insurance on top of that which you pay the freeholder?

Han_naH

That's right.

Truth is you know, a lot of these leases are "administered" by an office somewhere who doesn't notice the fact that you are not insured with a certain insurer. Because they don't do anything (like rental management agents).

In fact, between you and I, my lease was extended, and with it the annual charge went from something silly like £4 a year to £150 a year. They didn't notice - I'm still paying £4! Cheers love!