This isn’t a story about cladding. But it reveals a set of circumstances where a leaseholder can find itself with an uninsured loss. This might not be such a problem where there has been a burst pipe or minor malicious damage, but it is a different matter if the leaseholder flat has been destroyed by fire.

Let us first consider what can go wrong and then look at what remedies might be available.

ABC (a limited company) is a property owner. In January 2019, ABC purchased the freehold of 12 flats. ABC planned to refurbish the flats and then sell the leases for an enhanced value. To achieve this, ABC largely funded the purchase through borrowings secured on the leases. The leaseholder arrangements were not without complica...

To continue reading

This article is part of our subscription-based access. Please pick one of the options below to continue.

Already registered? Login to access premium content

Not registered? Subscribe