My Management Month - by Roger Southam

Chainbow's Chairman and Chief Executive discusses the latest goings on in the world of property management...

Just when you think all the scams and mischief that you can find have been found, something else from nowhere pops up!

I feel quite naive now, because I suppose in the search for more money and ensuring as much as possible is extorted from people, it was logical that mortgagees would profiteer out of buildings insurance with flats.

A little history lesson at this point. In 1998 the Council of Mortgage Lenders decided it would be better to have standard terms and one of these was a compliance of the buildings insurance. The mortgagees run a very good scam forcing people to take out their insurance if you buy a house. Therefore they lose out with flats and block policies. Or so I thought!

Well we have just uncovered that mortgagees will make excuses of block policies not complying with the standard requirements. Then they’ll insist the flat purchaser takes out their buildings insurance policy and pays a hefty premium.

Two results: firstly, a waste of money and secondly, double insurance on a flat.

So how on earth we can educate lease purchasers of the pitfalls and scams when the allegedly scrupulous mortgage companies are up to every trick is something that will continue to vex me.