Difficult neighbour threatening sale. Help!

[HeyPesto55]

Need some advice please. We have a difficult downstairs neighbour who has spent 2 months questioning why they need to provide a piece of easily obtainable information to finalise our sale. I am at my wits end now because this is the last piece of information needed.

It is confirmation of their buildings insurance policy. A 2 min phone call.

I have tried being really nice, getting solicitors to call to explain why it is needed, pleading, begging, getting annoyed... all to no avail. I just don't know what else to do.

Would it be really bad to get the freeholder involved? Maybe suggest we are worried they don't have insurance?

Johnd2, you are right. There is after all a collective interest in the property being mortgageable and you could argue it's a little short sighted to say it's no one else's business to assess whether this is the case.

Sorry if this has been suggested (haven't had time to read all replies..). But does your freeholder have a block policy? Surely this should be enough?

This is like thecancel the cheque thread! Would your neighbour be prepared to sign a statement confirming she has buildings insurance in place instead?

wow, even if the neighbour is happy to do that, as a buyer I'd have the same question - how do you handle an incident where you need to claim on insurance that should be on a block policy but is instead on a load of individual policies?

of course it's doable - and many people just think things like this won't happen to them - but if the buyers are already asking, a signed statement is useless really, unless they need to sue later on.

OP with the whole "she doesn't want you to move" or is trying to delay it, I'd honestly ask her directly. If that's what it is, she needs to get over it. Though as I say, if you do end up losing this buyer, the first thing I'd do would be to ask the freeholder to sort out a block policy, if your lease allows it.

Unusual set up but you have to work with it. I can see why solicitors want all the boxes ticked before they procede but I can also see why your neighbour is not responding to request for details of their insurance policy. I think I would not want give my insurance details to someone else either.

What I don't understand is how an insurance company would allow anyone to take out a buildings insurance policy when they don't own the freehold. If there was a claim who would get the pay out?

angelina, no one has taken out a full buildings insurance policy I think - they've just insured their individual flats.

Hey as notAngelina says, she wouldn't want to share that info. I wouldn't either, as she is being asked to disclose financial information to random people (your buyers, their solicitors, and mortgage company), about whom she knows nothing, and I think they have a cheek asking for a unconnected third party to share their confidential information.

I used to live in a leasehold flat up to a few months ago. We insured the contents but the building was insured by the freeholder. Don't you have a managing company that deals with repairs etc? They should be able to provide you with that information. I'd contact another solicitor for advise and if they do think it's not needed, consider whether you can move the sale to them, even at the cost of the current solicitor's fee (if it's important to sell now). The freeholder should have the information on each insurance, I'd guess, and they are being notified of the sale nevertheless, why not contacting them now?

I don't think it is the neighbour threatening the sale.at all, it's the very peculiar set up. I can't see how anyone would want to buy into it. Sorry OP

It's all going a bit cancel the cheque!

Apols angelina I thought you meant a block policy but now I realise you probably mean, why would an insurance company agree to insure an individual flat? I suspect they will take the money because straightforward claims may also occur and they might as well make money where they can.

I don't see how the neighbour can excuse not showing the policy. She too bought into this arrangement and might need to claim on a neighbour's insurance herself one day? How would a water leak from a flat above be treated, for example? I suppose some people won't care and will just pay themselves but that seems mad. So many people seem to buy without understanding their own property, I suppose that's also a possibility.

If this is the case, I would turn the sale on its head and talk to freeholder and flat owner and solicitor about amending the lease and getting a proper buildings insurance policy in place. I wouldn't be buying a flat with the set up you have described as what pps said above about making a claim. In fact I wouldn't be buying leasehold ever again but that is another story.

I just sold a flat in a block of 2 where both owners had a share of the freehold. We insured separately but as other posters have commented, it would have been better to have a joint policy. In fact when I last put cover in place for it, one insurer wouldn't provide cover for only the one flat. Fortunately my co-owner was happy to provide a copy of their policy (which was requested by the purchasers).

In this instance, I would imagine that the freeholder would insure their own interest in the building. They'd be mad not to have done so. I'd therefore be contacting them to obtain a copy of their policy, hoping they have one.

Our issue in selling was getting the co-freeholder to sign the Land Registry transfer documentation. In the end we completed a 350 mile round trip to his house and stood over him whilst he signed!

venys that's funny because I'm never buying share of freehold again

Venys, Zampa - interesting points. Having sworn never to buy leasehold again because of the complications, we are hoping to buy a freehold flat. But it looks like there is no agreement in place to update communal areas and they are in a woeful state so maybe the grass isn't greener.

Update: my neighbour has finally decided to supply a copy. Success! Except we can't seem to get our hands on it as it seems to keep getting lost in the ether somewhere If I still have hair left next week, I'll be amazed.

Thanks to all the posters and the advice/opinions. It's all been very useful so far. Just keeping my fingers and toes crossed...

I hope you get your copy asap.

the grass is a different shade in freehold, sure. In my shared freehold, it meant everyone had to agree what needed doing and a cost for it, which was a nightmare. It also meant someone had to be home if anything needed a quote e.g. repairs.

In the leasehold block I'm in now, the management company and freeholder decide everything and I'm happier with that than having to spend time debating with neighbours about who wants what. It is probably more expensive but - speaking as one tighter than a gnat's arse - worth every extra pound.

Tee hee - yes grass is definitely a different shade of green. And I know about difficult neighbours when it comes to maintaining common areas. We ended up with a Right To Manage which was leasehold still but have the flat owners right to manage and maintain then communal areas ourselves. It's tough when one person is always "too poor". Glad you are making progress - and let's hope you still have hair next week.