• Inability To Enforce Adequate Insurance For Freehold Flat Building

    By Guest on 07th Oct 2016

    Hi, I a looking into purchasing a freehold flat. I am aware of the issues of mortgagability. However, I have also been made aware that there is no lease in place to ensure that all flatowners in the block have adequate building insurance cover. Currently, (it is believed) that all the flats are arranging their own buildings insurance cover independently.
    Is there a insurance policy available that covers this risk, that the building may be inadequately insured by one or more of the flatowners? This is one aspect that is not covered in the freehold flat legal indemnity covers that I have encountered.

  • 2 Answers

    By Guest on 09/10/2016

    I'm not sure there is an indemnity policy available. If there no possibility of a lease being granted? What is the arrangement? How may flats are in the block and are the freeholds of the individual flats separately owned or is the whole of the freehold in common ownership?

  • By Guest on 10/10/2016

    Hi. There are 4 flats in the building, all of which, it is assumed, are currently buying freehold flat insurance to cover their own individual flats only. The flats are all separately owned with a freehold title. I realise now that this a rare situation. I do not know the other flat owners, so don't know about the possibility of converting the ownership to share freehold with leases, but I have been led to believe that the legal cost will be around £5000 to do this and draft new leases. I doubt I will be able to convince all the flat owners to stump up towards this.

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