Invalidation of Buildings Insurance Policy

[TonyD]

I own a Top floor flat in a converted block of two. I let my flat, the bottom flat being owner occupied. We have a Landlords type building policy. We are both Directors of the Managment Company. A survey that I commissioned gave a damming report on the external condition of the bottom flat. Cardboard boxes from floor to ceiling can be viewed through the front window, Electrics need maintenace and the unserviced Central heating is out of the Ark. I have had a solicitor look at the purchasing and leasing documentation, but due to the legal terminology about freehold he says there is nothing I can do to insist on the necessary maintenance. I am concerned that any claim made on the Insurance would be invalidated as the property is not well maintained. Would be grateful for any advice.

[Solent Watcher]

Not clear from your post as to who owns the freehold but more importantly what bits are insured for what and by whom. You mention landlords policy but that I suspect merely covers your flat (contents??) up to the "edges" of, but not including, the common areas or somebody else property (ie the flat below) Suggest you go and speak to your insurance broker in the first instance so that you can work out what is and is not insured. On the freehold whilst I am no expert (in many things!!) are not the freeholders required, by law, to insure the building as a whole ?? Do you have a sink fund for such things as electrics where it affects the whole building? Are not the terms of the lease that there is a payment required from the occupiers to such a mainteance fund. Anyway suggest brokers so that at least you know the base line from which to work from thus protect yourselves as best you can.

[leaseholdanswers]

I own a Top floor flat in a converted block of two. I let my flat, the bottom flat being owner occupied. We have a Landlords type building policy. We are both Directors of the Managment Company. A survey that I commissioned gave a damming report on the external condition of the bottom flat. Cardboard boxes from floor to ceiling can be viewed through the front window, Electrics need maintenace and the unserviced Central heating is out of the Ark. I have had a solicitor look at the purchasing and leasing documentation, but due to the legal terminology about freehold he says there is nothing I can do to insist on the necessary maintenance. I am concerned that any claim made on the Insurance would be invalidated as the property is not well maintained. Would be grateful for any advice.

Actually there are a number of remedies; its the joint control of the freeholding company who would seek enforcement, that prevent action being taken. It's a 1 : 1 vote tie.

So you need to take advice form a company lawyer on forcing a director to meet their oblgiations of acting in the best interests of the company- prejudicing insurance and a breach of the lease is a good case.

You can also look at handing it over via the LVT to an independant manager, or making a complaint to the local authority, as a leaseholder of the flat above, to serve an enforcement notice to do repairs.