Help, anyone know which options are open to me?

[find1]

I am a leaseholder of a converted house (2 flats - 1 upstairs, 1 downstairs)

Whilst going through the purchase process for my flat, my solicitor did not advise me that I would need to take out the freeholder's (Landlord's) building insurance as part of the lease agreement. I also neglected to ask many questions, which I am now paying for!

It has been 2 years since I purchased the flat and 3 months ago water from in my flat caused damage to the floor and ruined the ceiling of the neighbour downstairs.

After a lengthy process, the Insurance company agreed to settle the claim, but the Landlord made a specific request that as the insured party, any payment for the settled claim should be made payable to HIS company, although the Insurance company said they would gladly make out the payment to me the affected party. The landlord declined, got paid the insurance settlement and has refused to answer any of my emails or calls, and has withheld the insurance payment.

I owe no service charges or, arrears for insurance payments.

To make matters worse, the builder who carried out the repairs on my flat has been demanding the remainder of his money for his work! This has been really, really stressful. I myself have had to borrow a significant amount of money to have paid him lump sums. I have emailed the landlord advising him of this (although he was already aware). I cannot believe someone could be so needlessly ruthless. PLEASE ADVISE as this is proving to be a real dilemma

Thank you.

[IanM]

Re: Help, anyone know which options are open to me?

Hello Find1.

Have you explained everything to the builder and shown him letters from the insurance company to prove the money for the work has been paid to the landlord? He may be sympathetic, appreciate the efforts you've made to pay him so far, and accept that harassing you is not going to get him his money any faster.

You may have to sue the landlord to recover the insurance money but try going back to the solicitor that acted for you when you bought the flat and explain what has happened and they may send an official letter to demand the money, they may even do it free of charge if they think they have made a mistake with regards to the insurance cover.

Also check the lease agreement and the insurance policy, it may well be that as the recipient of the payout he is liable for the builders costs etc so the builder can then go direct to the landlord for his money.

IanM

[find1]

Re: Help, anyone know which options are open to me?

Thanks Ian,

Although the freeholder has the insurance put in his name, he has taken money from Axa for damages to my flat that was intended to pay for the repairs. I have had to borrow money, so it's not just the builder who I now owe money to. This has put me in an absolutely awful predicament! I only borrowed the money after the Loss adjuster had confirmed that the Insurers had agreed to the work being carried out and had agreed the invoiced sum, and the freeholders company were taking so long with dealing with the claim and the water damage needed dealing with as mould began to grow and the room began to smell.

There must be something that can be done to bring the Freeholder to release the money as he has effectually stolen it. As the Solicitor will not help out because of the kindness of his heart and I will possibly need to seek advice in the near future (for one or two specific reasons) regarding his negligence as my representative whilst purchasing my flat.

[IanM]

Re: Help, anyone know which options are open to me?

Maybe you should consider going to the police. If your landlord has received money for repairs on your flat, regardless whether the insurance policy is in his company name, on the pretense that he is going to pass the money on to you and hasn't then he could be arrested for obtaining money by deception.

It sound to me that the landlord is trying to devalue your flat and cause friction between you both so you will sell up for whatever you get offered to be rid of him, for a lot less than you paid for it and probably to a friend of his. Write to him and tell him that unless he releases the insurance money to you within 7 days you will report him to the police, he may ignore it but if he does follow through with the threat, take all the paperwork to the police and let them deal with him.

[bluebottle]

Re: Help, anyone know which options are open to me?

If there are any criminal offences committed by the landlord, the most likely is Fraud by False Misrepresentation, which replaced Obtaining Money by Deception with the enactment of the Fraud Act 2006. The amount involved, which is around £5,000, would fall within the scope of local CID or, possibly, an Economic Crime Unit. You will need to make a Statement of Complaint and this is best done at the police station.

[find1]

Re: Help, anyone know which options are open to me?

Bluebottle you have been fantastically helpful as well as really quick of the mark, with coming forward with advice.

Will go through the attachments which you sent tomorrow; with the view to starting the ball rolling tomorrow or Monday latest - following the leads which you have kindly provided. Please would you let me know whether I should post 2 seperate claims for the 2 sets of money which the freeholder has taken.

Am not so sure about the pursuing the criminal route though, as he did not deceive the insurers or my solicitor (in the case of the lease deposit) to obtain the money, but has taken to holding onto money that belongs to me!

I will try to obtain details of the economic crime unit though for advice as to whether there are grounds for prosecution based on a criminal element.

I am quite sure that you are busy, but will post details of any progress made.

Thanks again.

[find1]

Re: Help, anyone know which options are open to me?

Thanks again Ian,

The advice that you provided is another avenue worth investigating. For the freeholder to be pursued by the law, whether using civil or criminal proceedings will definitely make all the difference. He sees me as an easy target and appears to be a ruthless, wheeler-dealer type, money-grabber. It has been an immense comfort and source of encouragement to get helpful and professional advice from forum users like yourself. Thanks.