Hello all

I'm a ftb and there's a lot a stake, because I'm thinking of investing in a ground floor flat in a converted Victorian semi. The building has another two flats.
I was informed by the estate agent that there's an absent landlord, and that for 230quid I'd have to buy an indemnity policy. The ground rent is £10/pa.

But what does this mean really? What if the whole building falls down, and who's responsible for the maintenance like cleaning, changing broken roof tiles, etc... or even if there is a fire...
I don't understand how this works and whether I should go for it or not, but I've been looking for 2 years now and this is one of the few properties within my budget. Also, because it's a repossession I know I can get it at a good price.. but need to be quick...

HELP ME, I'm so confused....

Sounds like bad news with the Absent Landlord, I'm afraid. You will need the landlord's cooperation in the conveyancing stages too.

I would be keeping an eye on other properties at this stage.

I'd be wary.

If work needs doing to the building as a whole its OK if you can arrange it between the lessees of the various flats, but if you can't get agreement then you would might need the landlord to do it, or to take court action to compel work/contributions for costs of work from recalcitrant lessees.

If no landlord then difficult to compel others to do things.

Also indemnity policy would cover this kind of thing in that it would pay out loss of value because you couldn't get necessary works done but when you come to sell, your buyer or his mortgage lender might not be happy to accept an indemnity policy.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.

Richard, I think OP is the buyer.

pp1983, if you decide to go down the indemnity policy route - and Richard is correct that lenders are waking up to the fact that most are pretty useless - make sure that the vendor pays and read all the small print in the proposed policy. If you do not understand anything, make sure you ask and understand the answer. Do not be fobbed off. Insurance companies exist to avoid paying out - read the policy!"

I have an Indemnity Policy for my flat, due to an absentee landlord. What it protects you against is being charged back ground rent if they do turn up, and charges for doing work that you did in their absence without their permission.

If there is any work to be done, I would either share with upstairs, or if it just affects one of us then the one it affects pays.

We paid jointly to hav a massive bush removed, but upstairs will pay themselves for their new windows, for example.

The Indemnity policy has to be signed by the other tenants aswell as yourself, so you should be able to agree in there who does what when work needs doing.

Ary,