Steve Collier

Registered with Property118.com
Friday 30th October 2015


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Total Number of Property118 Comments: 1

Steve Collier

11:51 AM, 9th March 2021, About 7 months ago

Is the insurance valid?

As Jason says the policy should be specific for a block so that it protects both the freeholder and leaseholder. However, the law was changed in 2002 so that the leaseholder could elect to look after the insurance themselves by lodging a simple notice to the freeholder. The insurance still has to be specific to protect both sides, but in my experience policies can be much cheaper than the freeholder gets, as they commonly get commission for arranging it, which increases the cost. See the attached link to the Commonhold and Leasehold Reform Act 2002 which explains it and gives the notice pro forma.

https://www.legislation.gov.uk/ukpga/2002/15/section/164/notes#:~:text=Section%20164%20provides%20new%20rights,provided%20certain%20conditions%20are%20met

Hope that helps !

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