Forum | Any advice on Leaseholder Insurance costs - Loss Recovery Ins by HAYESBOY

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Any advice on Leaseholder Insurance costs - Loss Recovery Ins 14:53 - Oct 9 with 2210 views

Well hello there.

I am looking for any advice or if anyone has had any experience with his before please.

Basically I own a flat that is leasehold. A new company came in 3 years ago and took over the lease. For the first two years they charged ground rent and buildings Insurance.
This year however they have added 'Loss Recovery Insurance'.
Its not a large amount but question is, am I liable to pay this? Seems a bit harsh that I should pay their insurance taken out for any potential loss of income if one of the other flats does not pay.
Thanks in advance if you can help. Much appreciated.

Smells like a trout farm in here

Any advice on Leaseholder Insurance costs - Loss Recovery Ins on 15:04 - Oct 9 with 2161 views

Juzzie

I used to be a Leaseholder but never came across such a scenario but in cases like this I really think it's best you seek legal advice as it's very much how your Lease is constructed (I was one of about 15 Leaseholders and all our leases were slightly different).
In essence, it sounds like how car insurance works. We're all paying that bit extra for all the cnts that drive without insurance and then have an accident.

Though in this case, if a particular flat doesn't pay, that's fk all to do with anyone else other than them and the Freeholder.

Seems to me like a cop-out on the Freeholders parts so they don't have the hassle and cost of taking someone to Court. Everyone else just chips in that bit extra, problem solved (in their eyes).

edit: in a way I could understand it if Leaseholders were asked to contribute towards insurance should costs go up, for example on a Section 20 project, once work has been completed. Back in circa 2005 we got stuffed for an extra £7,000 and basically had no recourse. If I had to pay an extra £50 a year towards the insurance then I'd have taken that with glee.

But to protect against another flat not paying their bill to the Freeholder? nah, fk that.

[Post edited 9 Oct 2023 16:07]

Any advice on Leaseholder Insurance costs - Loss Recovery Ins on 19:14 - Oct 9 with 1980 views

HAYESBOY

Thanks for the reply .

I now have a telephone app booked for Friday with LEASE. The CA passed me their details and they seem to be a free advisory service regarding anything to do with leases.

There are two purpose built buildings in a court with 4 flats in each, 8 flats in all.
Problem is that all but two are owned by people who rent them out. I will talk to the other owners who are here to see if they have looked into this.

Thanks again.

Smells like a trout farm in here

Any advice on Leaseholder Insurance costs - Loss Recovery Ins on 21:02 - Oct 9 with 1926 views

Lblock

As noted above, I'd imagine the Lease is the golden document but..... it is odd that such a document would force you to have to take out a policy with a prescribed company.

That smells a bit "restrictive practice" - should really be that you must have a policy and show documentary evidence of it but you can get such a policy anywhere on the market.

Always makes me shrug my shoulders the whole insurance malarkey.
We have it at work where subs need to have £XMillion of liability insurances and show us evidence to get on our lists. There is absolutely nothing stopping them getting the policy, the TWIMC letter(s) and then cancelling the premium after one month or even the very next day.

Cherish and enjoy life.... this ain't no dress rehearsal

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