Freeholder asking leasholder to pay for repairs on his side of the building?

The freeholder is legally liable for buildings insurance, and the leaseholders pay a share in the service charge. I don't how a leaseholder can be given buildings insurance when they are not liable for the fabric of the property.

You need to know more about why the building insurer won't pay. Also, if the policy covers the whole building, which it should.

There are two issues here.

Firstly, I entirely agree with new Yorkie about the insurance. How can you insure a flat as stand alone? Who covers the roof, communal hallways, exterior areas, etc?

Secondly. the liabiltiy of leaseholders will be in the lease. Nobody here can say whether or not your wife has any liability until they have read the lease. I've managed a block where four house owners were liable (in part) for the roof of a block of flats in the same development. So you just never know what has crept in to leases.

The freeholder would be subejct to s20 in respect of recovery of funds, so may not get what they are seeking.

Reply to the comment left by Graham Bowcock at 08/04/2024 - 13:30
Sorry, I should have said it depends on what the lease says, but I've not known a block where the freeholder wasn't responsible. Indeed, their managing agents make a fortune in backhand commissions for choosing the most expensive insurance.

I did once have a situation where the insurer wouldn't pay for a new roof, but the reason was each leaseholder carried a £1000 excess on the policy, and the sum of the work was conveniently just below the sum of all leaseholders' excesses. It meant the freeholder could choose the contractor after a 'competitive' tender, and because he didn't have to claim on insurance, there was no oversight.

The commissions scam has now been outlawed, but freeholders still find ways of price gouging on insurance.

Reply to the comment left by NewYorkie at 08/04/2024 - 12:36
Depends on what the Lease states

Thanks for the replies everyone.
Currently working through the 36 page lease.
I look forward to when the Govt sorts out this freeholder/leaseholder nonsense - but wont hold my breath....
Cheers.

You should engage a Loss Assessor- you're own version of what the insurance company would use to dismiss the claim. If you can get a loss assessor engaged they will handle the insurance claim and the repairs for you. I have used oakleafe claims before with something similar and they handled the whole lot for me

Thanks - for all the replies.
Not had time to complete reading the lease - due to a family emergency.

Despite the lease usually being your first port of call (& not likely to help you), I'd say what works in your favour is that 1) he told you to get your own buildings insurance (unusual but not unheard of(& not many insurers like this so I'd be interested to know who each leaseholders is with & if they have had any shared claims)) 2) the length of time passed to notify you 3) the fact that his survey disputes any subsidence and 4) the fact that his insurance refuses to pay out. I'd tell him that you've taken legal advice (but don't waste your money yet) & until he provides what you've been told you need, you cannot look into the situation.

Quite possible to insure each flat separately (common in Scotland where leasehold no longer exists but also in England, we used to do it but now club together as we share the freehold of four flats) but it does become problematic in the event of a claim so it is best to join forces. With a third party freeholder they should have insured and charged back your shares

I have a similar issue to this. Our freeholder used to own all 3 flats of a converted house. There are no communal areas- the ground floor is flat one and has an entrance to the front - flats 2 and 3 have entrance and gardens at the rear. . In the past 2 years the freeholder has sold flats 2 and 3. They now want to sell flat 1 however 20 years ago damage was caused to the brick work due to freeholders rendering the wall and then being made to chip it off as the building is grade II listed. This damaged the front brickwork extensively and having neglected to repair this over the past 20 years, freeholders are now seeking to split the costs of the remedial work (rebuilding the frontage) between the 3 of us. It feels as if they’ve waiting until having leaseholders in order to avoid meeting the costs of repairs themselves. I don’t feel historic repairs that had occurred 20 yrs before I purchased the property to be my responsibility and feel that this is betterment for fiat 1 which is owned by freeholders who are looking to sell. Advice please ?