building insurance

[wan_amri]

We own a leased hold property since almost 6 years ago.

Around 3 months ago we received a letter from the company called The Compton Group tell us that they own the leasehold of our property, and tell us that we have to insure the property with their chosen insurance company which is Zurich.

We were so surprised and wondered when they took over the leasehold from the previous one. We told them that our property is insured with insurance company we chose.

Since then they keep sending us letters (threatening letters). Apparently entire houses in our neighbourhood have received these kind of letters. One of our neighbours even took this matter to local MP.

My question is ... is it true we have to insure the property with the insurance company chosen by the leasor?

We never heard of such things that the leased holders have to insure their property with insurance company approved by the leasor.

Thanks.

[scotman]

What do the terms of your lease say about insurance?

[redcrx]

check the lease. I have a flat and our flats have to pay the insurance to the freeholder. But we are able to question amounts and have got him to change insurer after we shopped around for quotes.

[themas]

It is normal in blocks of flats for the lessor to insure, because the building has to be insured as a whole. The leases specify this.

But it seems from your wording that you have a leasehold house and your own insurance on it. Whether your lessor can insist on you insuring through him probably depends on the terms of your lease. If you are only paying ground rent to the lessor and there is no service charge, it would be unusual for the lessor to have the power to insist on a particular insurer.

You could also contact the Leasehold Advisory Service - google it - for information.

[wan_amri]

When we bought this house (semi detached), we were told that the ground rent had not been paid by previous owner (about 15 yrs I can remember). Then the freeholder asked us to pay it which we thought was unfair because why we should pay it for previous onwer(s). Our solicitor got in contact with the freeholder, and it was agreed that if we paid for last 10 years, it would pay off for entire future ground rent (the lease is for 999 years). If we sold the house, the next owner(s) dont have to pay any ground rent anymore. We agreed with his advice. We have certificate and letter for that.

That's it under our lease that we had to pay. We are not obliged to pay anything else. We have the house almost 6 years now. We didnt even have to have building insurance because we don't have mortgage as we bought it cash (profit from selling previous house). But we do insure the building for the safe side ... just in case something bad happens.

[themas]

I think that, as you say your lease does not require you to insure through the lessor, the lessor has no right to try to force you to do so. But do ring the Leasehold Advisory Service to confirm.