• Apportionments - Building Insurance Premium On Leaseholds

    By Guest on 28th Feb 2017

    Dear Sir/Madam,

    When you exchange contracts, you must have buildings insurance in place. When you purchase a leasehold property I assume the same applies?

    If this is the case and ground rent/service charges are apportioned on the completion date, Is the buildings insurance apportioned on the same completion date or the exchange date?

    Regards

  • 3 Answers

    By Guest on 01/03/2017

    Yes

  • By Guest on 01/03/2017

    Ordinarily when you buy a leasehold property the landlord will be responsible for insuring the building and the tenant will pay a proportionate part of the premium. On completion the portion of the premium paid in advance by the outgoing owner will be apportioned in the same way as the service charge

  • By Guest on 03/03/2017

    Thank you for the clarification. I don't disagree with the principal, but the seller ends up paying a portion of the insurance for the leasehold property he is selling and obviously the new place he/she is purchasing.... I guess exchange and complete as soon as possible is the answer.

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