problem with managing agent

[lee2006]

Hi

I bought a flat in may and i paid the service charges and building insurance a few months in advance.

Ive had a letter for money for the ground rent which i paid, then i had a letter for service charges from the managing agents but the letter was in the name of the previous owner so i rang them to make sure that if i needed to i could still claim off my building insurance as it wasnt in my name yet.
Anyway they said i couldnt so i said what about the money ive paid and she said yeah you still aint covered and thats the way it is, they tried saying it was my solicitor but the ppl who own the land have all my details so im think the managing agents should too. The solicitor has said they have done everything required and the managing agents are saying i have to keep paying for something i cant use until my solictor sorts it out,

Anything i can do about all this, im thinking the best thing is to go to the citizens advice and ask them

Thanks

Lee

[blacksheep1979]

If you get it in writing from your solicitor that he has done everything necessary to transfer it into your name then you will be covered, either by the solicitors proffesional insurance (in the case of him being wrong - doubtful) or if anything goes wrong and the agents haven't done their duty they will be liable.

If you pop a letter to the agents saying as far as you and your solicitor are concerned you have done everything necessary and should anything need to be claimed off the insurance in the meantime as they haven't done their duty in completing the transfer then you will seek full compensation from them.

Should get them to pull their fingers out and to sort the paperwork. Especially if you get the solicitor to draft it/send it for you.

[managingagent]

Lee, I might be able to help here. I'm actually a managing agent that looks after over 200 properties and regularly deal with mid term sales of leasehold properties. The managing agent with whom you spoke is absolutely wrong in what they have told you. Firstly the insurance policy should be in the name of the freeholder not the leaseholder. Its the responsibility of the freeholder to insure the building and for the leaseholder to contribute their proportion through the service charge. Its the managing agents job to accept these responsibilites on behalf of the landlord. Clearly when you purchased the property you paid this sum on account which under normal circumstances would have been apportioned by the number of days the previous owner had paid in advance.

For example; say your service charge year end was 31st July (it will tell you this either in your lease or on the copies of the previous demands that should have been supplied when your solicitor sought replies to enquiries) and you completed today (i.e. 4th July) then the previous owner will have been owed the total service charge/insurance & ground rent over 365 days x 28 days and this should have been actually what you have paid for.

So for the managing agent to say that you are as such not insured is a breach of their obligations as agents on behalf of the freeholders. Essentially if anything were to happen to the fabric of the property then your banks security is not protected and they would be sued.

I suggest you review the completion statement and replies to enquiries from your solicitor to verify what you have paid for and make sure you write to the managing agents instructing them to confirm the position within 7 days.

Good luck and hope this has been helpful.

Aaron

[Aequitas]

Aaron is right. In 99.99% of cases the freehold of a block of flats is insured by the landlord. Your interest should be noted on the policy. These days this is usually done by a "general endorsement" which will say something like: The interest of all tenants and their mortgagees is noted. When you bought your solicitor will have been supplied with details of the insurance. Ask him to confirm there is a general endorsement. Even without an endorsement the law will find some way for the landlord to use any insurance proceeds to make good any damage caused by an insured risk.