does anyone know whether leaseholders should pay buildings ins?

want2bmortgage3

i ask because it doesn't make sense to me that, for example, four seperate leaseholders pay for their own insurance policies on the same building??

takoo

The way in which the leaseholders of flats in a block of flats pay for the building/fire insurance/ lift insurance and other insurances should depend on their leases.

A common approach is for the landlord or leaseholders' association to pay the premiums for all the overall insurances of the flats and common parts.

The expenditure is recovered by a service charge. It is common to apportion the expenditures pro-rata to the flats on a area of each flat basis.

Of course each flat owner will probably have contents, occupiers' liability etc insurances.

Takoo

want2bmortgage3

well.. to explain further, i live in a maisonette which is part of a block of four. 2 on the first floor and 2 ground floor. there is no service charge, but there is a ground rent charge of £30 a year. i dont have contents insurance, just the buildings insurance.

takoo

Having done a little reading since your last post I am inclined to agree with your first post. The issue is fraught with problems and distress!

Perhaps an expert can explain...?

Takoo

Frugaldom

I have been renting/leasing for the past 7 years and in my experience, the tenant is obliged to pay contents insurance (it's been compulsory on all my leases) but the landlord/property owner is responsible for buildings insurance. It's up to them how they recoup that money, I assumed it was costed into the rent. I didn't even know it was possible to insure a building you don't own.

want2bmortgage3

well i've been paying buildings insurance (because my mortgage provider has an interest in it) since i bought the place. and also at my last leasehold maisonette for 4 years!!! if the freeholder is charging ground rent is that partly to cover buildings insurance? what about if a roof is leaking or something who is responsible?

Frugaldom

Sorry, my earlier response may be irrelevant as I misunderstood the question and thought it meant leasing as in renting and not mortgaged to a leasehold as opposed to freehold. My apologies. We did have a mortgage on a leasehold property and, with regards to the ground rent, we had to pay some sort of rent to the owners - the houses had been built on land subject to a 999 year lease drawn up in the 1800s. Very few of us even knew we didn't own the properties outright as most were about 100 years+ old, but it was a strange case that ended up making headline news at the time. Turned out the landowner was now a London consortium and they owned a huge chunk of the council estates. Of course the council had been selling their houses off and nobody thought to check and make sure they owned the land they were built on. Buyer beware is what I learned from that experience

want2bmortgage3

well i'm just thinking also that i paid for the porch roof to be redone as it had a slow leak causing damp on the internal walls of the porch. so i'm wondering now whether this should be covered by buildings insurance. and could i still get the cost covered if i called them and said i had a leak and had to get a tradesman in quickly to fix it?

takoo

Hi All

The responsibility for roof repairs and porch repairs is really a question to address to the lease document(s). If it says you are responsible or you share responsibility with the other leaseholders, that is the answer in the first place.

However all the leases may say the landlord is responsible.

Ground rents would not normally cover the insurance premiums unless the lease(s) state otherwise but I doubt they ever would. Need to read the lease.

Insurance does not cover wear and tear repairs - only repairs for damage caused by say a storm. The policy will indicate the answer - maybe in the small print.

Suppose the building needs repointing. Who will pay for it?

Regards

Takoo

want2bmortgage3

looks like i need to find the lease and read it thoroughly! thanks for your advice

Frugaldom

Can I just ask for clarification on this please, as I'm still confused? Are you talking about leaseholders who pay rent for their property to a landlord or are you talking about homeowners who have mortgaged/bought properties that are not freehold?