LandlordZONE

01

Oct, 2014

Wednesday

Results 1 to 7 of 7
  1. #1

    Question Is it true or can I shop around?

    I pay annual 'ground rent' via an agency in london. Each year I get an insurance policy sent to me by a company on behalf of their clients, ie. those I pay the lease to. This year it has gone up and is not a competetive quote. It's the usual buildings cover including common areas, of which the only common bit is a garden path. The agents advise that I can't go to another insurance company without paying a release fee, therefore they appear to have me by the ..... But I suspect that I can let this policy lapse and take out a new one that will meet and exceed the requirements of the previous policy and notify the agents I have done so. Can anyone confirm this? Otherwise I'm tied in to the deal which isn't right.

  2. #2
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
    39,409

    Default

    Quote Originally Posted by PMK View Post
    I pay annual 'ground rent' via an agency in london. Each year I get an insurance policy sent to me by a company on behalf of their clients, ie. those I pay the lease to. This year it has gone up and is not a competetive quote. It's the usual buildings cover including common areas, of which the only common bit is a garden path. The agents advise that I can't go to another insurance company without paying a release fee, therefore they appear to have me by the ..... But I suspect that I can let this policy lapse and take out a new one that will meet and exceed the requirements of the previous policy and notify the agents I have done so. Can anyone confirm this? Otherwise I'm tied in to the deal which isn't right.
    Is your property a house, flat, or something else?
    1. If it's a house, you can escape by using the s.164 of Commonhold and Leasehold Reform Act 2002 procedure.
    2. If it's a flat, you're largely stuck- unless several of the lessees jointly apply to Court under the Right to Manage legislation.
    3. All the above relates to Buildings Insurance, of course. Contents Insurance is always your own responsibility.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  3. #3
    Join Date
    Aug 2005
    Posts
    512

    Default

    PMK,

    What was the "release fee" demanded ?

    Leasehold houses have the right to choose the building insurance company since Feb 2005 and you have serve a legal notice on the landlord company as Jeffrey has stated.

    Leasehold flats can challenge the reasonableness of the building insurance by application to LVT but it costs 350 pds which should be shared with other leaseholders. You can make a written request for a summary of insurance cover and get a copy within 30 days. You can use this summary cover to obtain alternative quotes and use the alternative quotes as evidence at the LVT.

    The alternative quotes must be for the same amount of insured cover or the LVT may decline to compare costs if "insured cover" is not like for like.

  4. #4

    Default alternative quotes

    My situation is similar, but the difficulty I've had is in actually obtaining alternative quotes. The brokers just don't seem willing to actually produce a quote, possibly because they do not want to annoy the company currently providing the very expensive buildings insurance for the freeholder. Any advice?

  5. #5
    Join Date
    Mar 2008
    Posts
    132

    Default Obtaining alternative quotes

    Hi Bunter

    Brokers and insurers don't work like this, so you need to approach a few more. Type "Blocks of Flats Insurance" into your serch engine and this will give you some brokers. You can also try ringing a few insurers.

    Is there something else about your property that might account for an unwillingness to quote? It may be that you need a specialist and I'd be happy to point you in the direction if you can post something more specific.

  6. #6

    Default alternative quotes

    Thanks Paul. I'm sure there isn't anything about our buildings causing an issue - if anything we are a straightforward case, modern buildings in a quiet area. I tried 3 brokers including 2 household names and 1 specialist and heard nothing back - as you say, I will have to try more. I'm just puzzled that these people aren't interested in the business.

  7. #7
    Join Date
    Aug 2005
    Posts
    512

    Default

    try www.residentsline.co.uk - based in midlands. This company can quote for block of flats insurance.

Similar Threads

  1. shop tenant's lease has ended and won't answer letters
    By miss*babs in forum Commercial Property Questions
    Replies: 6
    Last Post: 15-01-2008, 17:06 PM
  2. Getting an Open Shop Presence
    By sharemaster2 in forum Letting Agent Questions
    Replies: 1
    Last Post: 30-10-2007, 10:58 AM
  3. Shop with flat on top- split by lease?
    By yeahbutno in forum Commercial Property Questions
    Replies: 3
    Last Post: 27-03-2007, 14:45 PM
  4. Flat over shop sublet- how to recover?
    By settloe_99 in forum Commercial Property Questions
    Replies: 0
    Last Post: 05-01-2007, 11:10 AM
  5. Shop lacks sanitation- what can tenant do?
    By crispy in forum Commercial Property Questions
    Replies: 3
    Last Post: 02-06-2006, 13:08 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •