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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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Purchasing a privately owned property in an Apartment block

Resolved Question:

Purchasing a privately owned property in an Apartment block that is still largely owned by the local council (Hackney), is the private property incorporated within the insurance cover provided by the Council?

How does one find this out and also how does one find out what the monetary value of the insurance cover is?

Is there a particular Authority/Body that I should approach?

Many thanks for any assistance/guidance that you can give.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Have you seen a copy of the last service charge demand? Also has the solicitor conducted management inquiries?

Any insurance is only likely to cover the rebuild cost from destruction and structural issues.

DO you require this for a mortgage?

Kind regards

AJ
Customer: replied 3 years ago.

Last Service Charge demand has not been seen yet.


 


Solicitors have only now received documentation for purusal.


 


Insurance is not required for Mortgage; purely to cover purchase of new property in worst case situation.


 


Thanks.


 


David

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Any insurance contribution will be paid for through the service charge. The service charge demand will say whether you make a contribution to the insurance premium of the whole block.

The only way to be certain is to request a copy of the policy from the council or seller, or requisition the seller to confirm how the block is insured.

It would be unusual for the tenants to arrange their own insurance (unless they had management rights) especially as the freehold is owned by the council and generally it is difficult to insure something that you dont own.

If you can requisition the seller to confirm that insurance is provided by the council then this will become part of the sale contract as a representation, asking the agent is no good as you will have no recourse against them if the representation they make turns out to be incorrect.

I look forward to hearing from you.

Kind regards

AJ

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