Rejected by C&G due to lack of block buildings insurance

Steel_eye

I've just been rejected by Cheltenham and Gloucester. There is no block insurance (often part of the service charge) for my BTL flat. I have buildings insurance myself and an indemnity policy to cover me for un-insured damage but C&G rejected my application. Any ideas about how I might persuade the C&G to change their mind?

Is this common with other lenders?

Most applications ask if you have been rejected by another lender, where do I stand here?

The C&G offering is 5.09% fixed for 2, 3, 5 or 7 years, you have to sort out your own legal costs but with no other fees if you apply over the net. This is easily the best BTL deal I could find. Have you seen anything better?

Thanks.

EdInvestor

Hi Steeleye

Do you mean that the "common parts" of the block of flats ( the roof the party walls etc) are not insured?

So what happens if the building burns down?

Steel_eye

EdInvestor wrote:

So what happens if the building burns down?

Don't rightly know. They are two storey purpose built maisonettes, don't know if upstairs insures the roof and I insure the foundations? When I bought I took out a one off indemnity policy to cover me against any damage should one of my neighbours not be insured.

Managing agents seem to think that a single policy covering the whole development would make things simpler all round should any sort of damage occur, but don't seem to think it essential. They have tried to drum up support for a single policy, but as usual have met with inertia amongst the other owners.