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superlandy
12-04-2010, 18:44 PM
Hello, i brought a flat with a mortgage which had been converted from a semi detatched house into 2 flats.

our flat had been sold with the freehold, at the time the upstairs flat had not been sold, so we were granted a lease for the interim by the landlord, until the upstairs flat sold at which time we would be transfered the full freehold.

when the upstairs property sold the upstairs buyers were granted a lease, and they brought on mortgage. we as the downstairs owners were transfered the full freehold (as stated in the sale advertisement)

As the freeholder, I am resposible as my lease states to ensure the building is insured with block insurance and to split the cost proportionately with the buyers of upstairs. so 50/50 insurance costs, seems fair to me.
in my lease it also states that i should charge a ground rent, (popcorn rent) £50. As reluctant as i am to charge a neighbour, i do so on the grounds of following the instruction of the lease.

I have done that now for two consecutive years.

The first year after sending 3 statutory polite notices, and giving them a number of options to pay in instalments / all at once with no interest, it took 3 months to get payment for half of the block insurance from the upstairs people, after a blazing row.

They had been sold a mortgage with free insurance, which was unfortunate as it states in the lease (which they should have read before signing!) that
buildings insurance is to be set up by the landlord only (acting landlord) and they pay half, you cannot have a block of flats with each tenant insuring there own section with buildings insurance, it is not legal insurance, and is why block insurance is valid for blocks, and someone has to be responsible for that action, the freeholder.

Initially after not recieving payment from upstairs, I went to a solicitor last year it cost me just under a hundred pounds to get advice, and the best advice he could give me was approaching them if i had allready sent letters,
, well, i wanted to avoid that because its not very easy, that approach turned into a row, as predicted. well, full insurance payment came soon after but i was still left £100 out of pocket for the soilictor visit. I look at it as personal advice.

My problem is again, this year , exactly one year after last, that the people upstairs are not paying there half of the insurance after i sent a polite statutory notice, i have sent two letters now, one on 3rd of march, one on 6th april, still no response. I see a repeat of last year approaching again.

I am getting tired of paying for someone else insurance, but, i cannot default because i would be putting my own investment at risk (my flat) i must keep paying block insurance, because, my lease tells to.

I see that anything other that i do which is not within the boundaries of the lease will not stand up in court. i have no other choice but to keep paying.

I have sent no requests for maintenance on the building , which is luckily in a good state of repair, no other fees, nothing. Just buildings insurance. Its not much as far as that is either, far less than an normal house!.




what can i do? i am tired of bieng ignored and paying for someone elses share of insurance out of my own wallet. thanks for any advice.

adam.

sgclacy
12-04-2010, 19:20 PM
I suspect you feel very uncomfortable taking legal action against a neighbour so close to you.

I would suggest the following:-

Download Form N1 from the internet - http://www.hmcourts-service.gov.uk/courtfinder/forms/n1_0102.pdf and fill it in and send it to your neighbour marked DRAFT.

Advise that you have tried to be reasonable and that in the absence of a constructive dialogue you have every intention of putting the matter into court.

They will state that their mortgage product requires them to take out the lenders own insurance. You should suggest that they may have been mis-sold a financial product and they should have no great difficulty in getting a refund back of the premiums they have paid. You could offer to help provide the evidence to help them, ie the reference in the lease to the freeholder being required to insure and past copies of the insurance schedules - again this will position you as being helpful rather than confrontational. It is their solicitor (who almost certainly would have also acted for the lender) who incorrectly advised them and their lender of the insurance provisions on the lease. I have seen this in the past as a freeholder and helped lessee get back the insurance premium they have paid their lender, when clearly the lease states it is the freeholder who has to insure.

Gordon999
14-04-2010, 12:45 PM
Write to other flat's mortgage lender and ask for payment of 50% of premiums for buildings insurance which are an obligation under the lease.

Point out - If you are insuring for the whole block under the lease , the "other" insurance may be invalid and may not pay up in the event of a substantial claim.