Small block of 6 flats with no block policy insurance?

Small block of 6 flats with no block policy insurance?

11:22 AM, 26th April 2016, About 8 years ago 15

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I have a flat in a small block of 6 flats. We do not have a communal entrance or communal hallways. Each flat has its own individual front door, almost like a house. As per terms of the lease, Freeholders do not provide us with block insurance or any maintenance. We each maintain our own flat and individually insure our own flat.block policy insurance

I am thinking of selling the flat. Does the lack of Block Building Insurance means that my lease has a defect? In your experience would prospective buyers have difficulty getting a mortgage against my flat due to this lack of Block Building Insurance?

Does anyone have come across this before?

I appreciate any help or advice that you can give me.


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Jason McClean - The Home Insurer

16:43 PM, 26th April 2016, About 8 years ago

Hi Sash

It is the freeholders responsibility. He's not doing you a favour, he's doing what he needs to protect his property - and yours.

Sash D

16:58 PM, 26th April 2016, About 8 years ago

Hi Jason

The freeholder seems powerless unless the leaseholders agree. The free holder has tried several times writing to the leaseholders to get the agreement since the lease needs to be amended accordingly but amazing all the other three leaseholders refused.

The freeholder even sent my letter (which detailed the risks involved) to the leaseholder. My only option is to write a personal letter to the leaseholders and hope common sense prevails. I cannot see any argument not having the freeholder cover the insurance especially there is no additional costs (apart from the lease amendment).

If something does happen having four insurance companies trying to deal with each other will just mean long long delays and ultimately risk losing the flat.


Tony Lilleystone

17:31 PM, 26th April 2016, About 8 years ago

This insurance situation is not uncommon with maisonettes or when old houses are converted into flats.
It is likely that buyers’ solicitors will be unhappy, as mortgage lenders will normally want reassurance that the whole building is insured under a single policy.
However the answer to the problem will probably be for you to pay the premium for a Contingent Buildings Insurance legal indemnity policy. Such a policy provides cover when any part of the building of which the flat forms part is damaged by an insured event but the freeholder or another lessee has failed to insure entirely or for an adequate amount.
These indemnity insurance policies are normally arranged through solicitors and they should be able to get a quote for you. But you don’t need to pay anything until you have a buyer and their solicitors raise the point – they might not!
You could check whether your solicitors arranged such a policy when you bought your property – if so then it could be passed on to the buyer (but a top-up premium may be payable.)


20:58 PM, 26th April 2016, About 8 years ago

I have a flat in a shared freehold block of 4 and it was no problem to get insurance individually. The lender doesn't require insurance in place until exchange. We subsequently decided to club together and get a joint policy which would seem a sensible plan. You need to talk to other leaseholders and find out what their problem is, perhaps they don't trust the freeholder?

Sash D

22:04 PM, 26th April 2016, About 8 years ago

Reply to the comment left by "Tony Lilleystone" at "26/04/2016 - 17:31":

Hi Tony

This is quite interesting point. I vaguely remember something about the indemnity policy when I brought the property so will have to look into it. If there isn't one in place how do you get one ?



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