Coppen estates home insurance penalties?

[Catmandu 10]

Has anyone who owns a property on leasehold land (Coppen Estates) being charged annual penalties (£35 per year)for not taking out house insurance with Royal Sun Alliance? I would really appreciate replies on this one as I think it is an outrage!

[ccit 10]

No problem here.

[rayggb 13]

No problems with them ,we have paid them for years for our 800 year lease.

I think this type of rip off has been exposed by watchdog.Probably a newish phenomina to get money!

[ccit 10]

The properties where I live were all leasehold when built many years ago. I seem to remember that we had this problem then but we bought the freehold before Coppens took over and it is all a bit hazy now. Have you lived in the property very long? I am just wondering if it is something that they are doing with new owners. A family member has resided in a property (flat) which is leasehold (Coppens) for two and a half years and has not (so far) been contacted about this.

You should examine your lease closely and perhaps discuss it with your solicitor. However, I imagine that Mr Shaw will soon be along and be able to throw more light onto this.

[Catmandu 10]

Only lived there two & half years and none of my neighbours have this charge. When I queried this with Coppen Estates they said it had just come in to force when I bought my house. I understand from my solicitor that is not an enforcable charge but I'm not sure what their rights are as landowners, or my rights as a leasehold homeowner. I am awaiting further information. It seems to me that by forcing money out of someone for not taking out insurance with who they say you should is extortion, and this kind of practice should be abolished. Any comments?

Edited June 18, 2013 by Catmandu

[trackrunner 10]

Coppen Estates tried to get me to pay previous owners ground rent saying they hadn't paid it for the year in which we purchased, although I had letter from solicitor of person we bought from.

I told them if they want it they would be having a very long wait, they moaned and groaned a bit but then. never heard any more about it and that was 7 years ago.

They also said we had to use a solicitor of their choice if we wanted to purchase leasehold, and told us exactly how much their solicitors fee's would be costing me.

They are crafty

Edited June 18, 2013 by trackrunner

[Catmandu 10]

Thanks Trackrunner, I have heard stories of that happening to other people.

[ccit 10]

I understand from my solicitor that is not an enforcable charge

Could you ask your solicitor to write a short letter stating this? At least you would then have something to show them if necessary. There seems to be some inconsistency here.

[sedith 19]

St Giles Properties tried it on with me before I bought the freehold, the charge was £10 for not using their insurance. I just drew a line through the request and wrote on 'not applicable'. Never heard anything else and they stopped including it in the payment request ... I was told it is unenforceable.

[Jeffrey Shaw 88]

If a house's leaseholder (T) does not wish to comply with the insurance covenant (and ALWAYS ensure that the covenant is there: occasionally it's not!), there are two ways out:

1. Buy the freehold reversion from its owner (L).

2. Use rights under s.164 of the Commonhold and Leasehold Reform Act 2002. This offers an opt-out if T serves an appropriate Notice on L, demonstrating that T has equivalent or better insurance obtained independently.

Edited June 18, 2013 by Jeffrey Shaw

[sedith 19]

I'd never touch leasehold again with a barge pole ... more trouble than its worth! My advice would be, if its leasehold, walk away and look for something else!

[Jeffrey Shaw 88]

I'd never touch leasehold again with a barge pole ... more trouble than its worth! My advice would be, if its leasehold, walk away and look for something else!

Poor advice. Most houses in Sheffield are leasehold; and most leaseholds involve no real problems at all.