Re: Covenant in lease specifying insurance co - status ?

Jan 03, 2008 1 Replies

Hi all,



it's that time of year - house insurance up for renewal. I'm less than impressed with the 20% increase my current insurers think they'll get, so am shopping around. I'm a homeowner, paying a mortgage on a leasehold property.



However, there's a clause in my lease which states that the property "shall be insured with XXXXX or other insurer of repute, approved in writing by the freeholder". When I first bought the property, the freeholders wanted 40quid to "approve" the insurance. Even if I just renewed it they wanetd this every year ....



How enforceable is this clause, and if it is, how reasonable is the charge ?



thanks



I don't know about "enforceable", but when B.Socs started doing this (years ago) if you dared to insure elsewhere, most insurers agreed to reimburse the policy holder. So that may be worth a try.

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