Hi to All :) I'm new and in need of urgent help

[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.

[Nic]

Re: Hi to All I'm new and in need of urgent help

Just bumping for u

[Hurricane Puffrose]

Re: Hi to All I'm new and in need of urgent help

highlighted to admins after unanswered for 48 hours.

Please accept our apologies for the delay, but one of our Admins got married today

[Bill-K]

Re: Hi to All I'm new and in need of urgent help

Hi Find1. PuffRose has been trying to get someone to answer your post - which I confess to ignoring, as it is not my area. As she explained, a bunch of our admins have been a bit indisposed today with a happy event, and I think at least one of them has some knowledge of property matters such as yours. For what it's worth, it appears to me that you have been shafted by the solicitor AND the freeholder.

My understanding of these matters is that you engaged the solicitor to look after your interests, and s/he was negligent in that respect, by not pointing out a somewhat restrictive clause in the lease to you with regard to property insurance. I can understand the need for a proviso that adequate insurance is taken out and sustained throughout the lease term, but I don't understand how or why it had to be the freeholder's own insurance. It seems odd to me that the solicitor didn't mention this. I feel that you may have recourse via the Law Society in this respect - or whatever regulatory body now oversees these matters.

As a consequence of this, it appears that the freeholder (I decline to use the term 'landlord') has effectively duped your solicitor - and therefore you - into channelling any insurance payouts into his/her coffers by insisting that his/her own insurance is used. I smell a rat - and I feel that perhaps your solicitor should have smelt it earlier.

My perception of 'leasehold' property ownership is that the leaseholder (or 'lessee') has full responsibility for the upkeep of the property - and therefore should be allowed the freedom to select appropriate insurance (subject to scrutiny). You were denied this freedom, and I believe that there may be a case you could make to force the freeholder (the 'lessor') to take responsibility for the repairs - by the very fact that they have denied you the option to choose your own insurance. My meagre understanding of these matters is that the freeholder should have no more rights over the property other than the right to collect 'ground rent' from the land upon which the property rests, and the right to expect YOU to keep the property in good order.

No edifice lasts forever - so you have a responsibility to maintain it. Hence the need to be able to choose your insurer, etc., etc.

If the freeholder has restricted this choice, then I think there may be a good argument that they have effectively taken over the responsibility to maintain it. Enforcing that is another problem, though. You seem to have a landlord who has managed to get you to sign an unfair and unbalanced lease agreement, and a solicitor who let that happen. If you can get the builder to see your side of the story, you may have yet another guy on your side.

In the end, though, it looks like you may need to prepare a good case for a defence against the builder's lawful claim for payment. You and the builder look like the innocent and injured parties here - so in that respect you are on the same side. Written evidence from the solicitor who took your money and from the freeholder who took the builder's money is what I think you need to try and assemble now. Play the innocent idiot, and throw them as much rope as they need.

That's my unlearnéd take on this, matey. I welcome the opinion of those better-versed in this subject, but I hope I have helped meanwhile.

[find1]

Re: Hi to All I'm new and in need of urgent help

Thanks for putting your understanding of.the matter across Bill-K.I already have substantial written evidence that the Landlord is wrongfully holding onto insurance money intended to pay for damage which I for a claim which I had to stake with the insurance company.The builder is rightfully angry as he has been extremely patient. I myself have had to borrow money. Taking the freeholder to court would mean ploughing in more money that i would have to get from heaven knows where Yes, the solicitor too was extremely negligent in many more ways than i have had time to mention.I would appreciate more help with this so that I can know my rights and methodically which steps are best to take from here.

[find1]

Re: Hi to All I'm new and in need of urgent help

Anyone with any further help out there? I'm still at an ends with what to do

[Hurricane Puffrose]

Re: Hi to All I'm new and in need of urgent help

I'm gonna call out again for you Find hun.

Make the admins aware your still waiting, once again apologies you havent had an answer!

P

[find1]

Re: Hi to All I'm new and in need of urgent help

Thanks sooo much, I'd really appreciate that.

[Sapphire]

Re: Hi to All I'm new and in need of urgent help

Hiya I'm sorry but I have no knowledge in this area. I think the best thing will be to keep bumping this up till someone in the know can help, so sorry.

[Hurricane Puffrose]

Re: Hi to All I'm new and in need of urgent help

Consider it done sapphy.

[TUTTSI]

Re: Hi to All I'm new and in need of urgent help

Bluebottle may have some insight in a case like this, Puffrose PM him with the link I am sure he can help hun.

[bluebottle]

Re: Hi to All I'm new and in need of urgent help

Bluebottle just landed!

Okay. The solicitor in your case has been negligent and, in being negligent, has caused you to suffer detriment in the form of financial loss. The best way to deal with the solicitor is through the Solicitors Regulation Authority (SRA). Their website is www.sra.org.uk where you can download a complaint form.

With regard to the events involving your landlord, although the landlord is, indeed, the insured party, he owes the money to the builder who carried out the repairs and it is the landlord who the builder should be chasing, not you. However, the insurance company are partly to blame for being so lilly-livered as to cave in to the landlord and hand him the settlement cheque. If they had followed the rules, they should have told him to take a hike and paid you or paid the builder directly. You should not have to shoulder the financial responsibility for the builder's costs and I would be inclined to serve the landlord a Notice Before Action Letter if you have already given him plenty of opportunities to reimburse you. Which court is the most appropriate will depend on the sum of money involved. How much is involved, please?

[find1]

Re: Hi to All I'm new and in need of urgent help

Thanks Bluebottle.
The sum involved is £2700 + £250 excess. I have an outstanding balance of £1000 to pay the builder. I borrowed £1700 after the Loss adjuster advised that the Insurers gave the go ahead for the works to be carried out.

There must be something that can be done to make the Freeholder release the money which he has effectually "stolen." He has taken money which was paid out to his "company" on the premise that he would hand it over to me, the policy payee.

This is not the first time either that he has witheld money from me. My property was purchased with a lease of just under 70 years. I decided to renew the lease and began the process. Its an old flat which was found to have dry rot (the initial survey did say that it was a possibility to be investigated). After moving in, and getting professionals to excavate and check, the dry rot was found and it was quite bad. The money I had put aside for the lease had to be used to treat the affected areas.

My solicitor had however placed a £1500 deposit towards the lease renewal process without asking.The renewal process had to be terminated approximately 3 months after starting. My solicitor wrote to the freeholders company for a return of the deposit (minus freeholders survey fee) and never ever received an answer! Having received his hefty purchase and sale fees too, he never even lifted a finger to pursue what was owed.
The freeholder never did return a penny of the deposit. So maybe that's why he is being so bold as to hold onto my insurance payment?

Thanks for the info about the forms though, I will definitely take up the issue regarding my solicitor using the route you have advised once the issue with the builder and the freeholder are resolved.

At the moment though, I really could do with some advise as to precise legal steps that I can take to force the freeholder to hand over the money he owes, so that I can pay back the money that I've borrowed, plus get the builder of my back with hos outstanding balance, as I cannot see the builder (at this moment in time ) seeking to get his balance through the courts. Furthermore, he has been patient and is rightfully looking to me to resolve this matter.

[bluebottle]

Re: Hi to All I'm new and in need of urgent help

Okay. You need to follow Civil Procedures Rules with this one. If the total amount of money the freeholder owes you is less than £5,000, it can be dealt with through the Small Claims Court. If it is over £5,000, it will need to be dealt with by the County Court. However, if you secure judgement against the freeholder, due to the amount involved, you can ask the court for the judgement to be referred up to the High Court for enforcement. This is undertaken by High Court Enforcement Officers (HCEOs) who have the power to force entry to business premises and remove goods to the value of what you are owed.

You will need to comply with Pre-Action Protocols. I am attaching a copy of the Civil Procedures Rules which govern civil claims. As long as you comply with them, there shouldn't be any problems.

[Nikolai]

Re: Hi to All I'm new and in need of urgent help

Hi and sorry to hear of your problems. The starting point for this is the title to the property. As yours is a leasehold flat, 2 titles are relevant. Your title is leasehold, the other is the freehold title. Your solicitor should have given you a copy of both, plus a copy of your lease. If that hasn't happened, demand them now - they will be on the solicitor's file. The freehold title will give you the identity and address of the landlord or freeholder - sounds like it may be a limited company from what you said. The leasehold title should show you as the registered proprietor of your flat. The lease will contain provisions about the insurance of the building and will govern the rights and responsibilities of the people involved, including you. The 2 titles will each comprise maybe 2 or 3 pages of A4. The lease will be longer, maybe 10 pages or more (I'm guessing). If you can post the part of the lease that deals with buildings insurance on the thread, I'll be happy to help you if I can. It should be a couple of paragraphs and you may find it mentioned in the lease under landlord's/freeholder's/ lessor's covenants and also under tenant's/leaseholder's/lessee's covenants.