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xps

Reinstatement Value Question

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Hi All,

Sorry newbie here and 1st time house buyer. We're buying a flat. It's in a flat conversion in central London. It's a basement flat the offer is 345K. The Survey & Valuation came back and it mentioned the reinstatement value is 145K/flat.

There are 2 other flats in the house, the ground flat and the top level flat which is a maisonette floor 1 and floor 2.

Is reinstatement value of 145K/flat something that I need to worry about? When insuring the house should I insure 145K for the building or the entire building? I called the valuation guys but they are pretty useless, it's one of the company appointed by the bank.

Thanks!

xps

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Hi XPS.

You will no doubt find that the whole building is insured with one insurance company already. If you are buying a long lease then the freeholder will be insuring the property in its entirity. If you are buying a share of the freehold then you will prob find the other freeholders have set up a management company and this company insures the whole flat. You will be charged a monthsly fee for the insurance and other maintenance costs if you are a leaseholder or they will spilt the insurance cost equally if you own a share of the freehold.

I hope this makes sense.

Thanks

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You will no doubt find that the whole building is insured with one insurance company already. If you are buying a long lease then the freeholder will be insuring the property in its entirity. If you are buying a share of the freehold then you will prob find the other freeholders have set up a management company and this company insures the whole flat. You will be charged a monthsly fee for the insurance and other maintenance costs if you are a leaseholder or they will spilt the insurance cost equally if you own a share of the freehold.

I see thanks for the clarification, I guess it's now back to solicitor to find out if the building is already insured fully.

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  • 197 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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