• Lease Breach Indemnity Policy

    By Guest on 08th Jan 2015

    I wish to convert my loft space which I am told is not currently demised to me under lease terms. I enquired to the freeholder to jointly buy the freehold of our maisonette with my neighbour. When the agent visited the maisonette they said that downstairs(co-lessee) has breached leasehold terms by making access to basement space not demised to them, and therefore they value the freehold substantially higher. My neighbour says they now do not wish to purchase the freehold at the inflated price, and the freeholder won't sell to a single party only jointly to both parties. The freeholder still wants to charge me half their inflated f/h valuation for an amendment to my lease to include the loft space. The freeholder has thus far not acted against my neighbour for their breach of lease downstairs. Is it possible for me to buy an indemnity insurance policy and then go ahead and breach my lease by converting the undemised loft space? How much should the policy cost me?

  • 1 Answers

    By Guest on 09/01/2015

    I'm afraid not. One of the questions any insurer will ask is whether the landlord is not notice of the breach or impending breach and if the answer is yes they will not offer cover, since the risk of a claim is substantially increased.

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