Building's Insurance - Share of Freehold properties

[BatterseaUK]

Hi. I am a first-time buyer in the process of buying a ground floor flat in a purpose-built, three apartment, Victorian building. The apartment comes with a “share of freehold” – so, as I understand it, the ownership structure means that I will be buying the apartment leasehold as well as a third share of the freehold management company.

The question I have centers around buildings insurance for these types of property. Upon further investigation by my solicitors, I've discovered that each of the three apartment owners has their own building insurance policy. This seems quite unusual to me as I would expect one building insurance policy to be taken out by the freehold management company covering the entire building.

The reason this is causing additional concern is that there is a crack in the external wall next to a bay window. The vendor has told us this was historic movement and that he has seen no further movement in the 10 years he has lived in the property. Being a sceptic I don’t believe this and if on-going movement / subsidence was to be occur, whose insurance policy would cover the required repairs. As the apartment we are buying is on the ground floor, would we be expected to cover these costs?

Has anyone else has experience with properties of this sort? Can you give me any advice about what to expect when it come to insurance on share of freehold purchases / what the best setup would be?

Any help / thoughts you have would be much appreciated. Generally feeling a little lost without much previous experience to refer back on.

Thanks!

[DCISPV]

Freehold flats can be a complete nightmare. Freehold flats often have their own buildings insurance. Some get together with the other flat holders and get a 'block' policy that insures the whole property.

The very nature of freehold and leasehold flats are problematic for leasholders/freeholders.

I suggest you get a good, full survey before buying the property and get a good buildings insurance policy if you do. Also putting in writing to the other flat owners that you require them to have adequate buildings insurance in place.



Good luck

Steve

[hbc001]

Hi BatterseaUK - I am in the identical situation as you except I am one of 3 share of freeholders for a property that contains 4 flats. I am about to buy the 4th flat (my second in the block) and will take on 50% of the freehold. The freeholders are also the leaseholders and we all ahve individual buildings insurance but i want to instigate a collective insurance with all parties named.
Did you find anything out about this. Any advice welcome as I have been unable to get quotes from insurance companies when they realise the policy is to cover multiple people and multiple flats (albeit under one roof).