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  • A mate noticed some pretty odd fees on his, like a huge rise in insurance.

    Do you have any good links to initial reading that I could fwd?

    Cheers.

  • Insurance CAN rise for good reasons (i.e. they need to cover for flood risks that weren't there before, or they're upping the fire coverage post Grenfell) but it's also one of the classic scams. Freeholders can't officially make money from leaseholders so they have to scam it out of us - one of the ways is that they get up to 50% 'finders fee' on the insurance contact, where they charge leaseholders 100% of the cost, then split that cost 50/50 with the insurance company. It is horseshit but it's totally legal.

    The first thing I'd do is search for the freeholder of the property to see if they're aggressive or unethical. You can view all previous tribunal decisions involving a freeholder here (https://decisions.lease-advice.org/) - if they're hounding people through the courts for nothing, that's a bad sign.

    From there your guy can read up here (https://www.servicechargedisputeguide.info/the-building-insurance-component-of-my-service-charge-has-increased-by-60-and-my-housing-association-landlord-will-not-let-me-see-the-policy-is-this-legal/) and see if this fits with the way in which that freeholder works. I.e. is it a known issue, is it a known scam, is there an obvious response or is this a unique situation? The more case law you can accrue on it, the more confidence you can have that you'll win. The more unique the situation, the more likely it is that your freeholder can hire expensive lawyers to drive his view through the courts.

    If it's something with an obvious redress from your reading, it'd be good to talk to Lease next - they'll give you a 15 minute advice slot with a lawyer who can advise your guy. It's free - link here (https://clients.lease-advice.org/Appointment/Appointment?isFireSafety=False). They'll give you practical advice about whether or not it's a) worth challenging or b) likely to be a success.

    If they think your pal has a case, the next step is to apply to Tribunal for a determination as to whether this is payable or not. If the freeholder is aggressive, it'd be good to get some legal advice at that point too.

    As you can see this is all quite a faff. Most freeholders rely on the fact that leaseholders will be absent or happy to pay for a quiet life. If your freeholder is aggressive or unethical, it's worth learning about this stuff. If it's an extra hundred quid or year or so, probably not a good use of your time. Happy to provide more detailed advice if your pal has concerns.

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