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Corrigendum-Leaseholder Building Insurance Policy
AI Summary
Reading Borough Council is issuing a contract to secure third‑party property insurance for leasehold residential properties in which the Council retains the freehold interest, principally those acquired through the Right to Buy scheme. The procurement covers 229 leasehold units sold under Right to Buy, 13 shared‑ownership houses, a single mortgaged property, and 16 detached garages leased to Right to Buy leaseholders. The Council’s freehold status obliges it, by lease provisions, to arrange buildings insurance on behalf of leaseholders and recover the premiums via the service charge, a duty that will be fulfilled through a long‑term agreement with an insurer.
The insurance arrangement will provide comprehensive buildings coverage for the portfolio, mitigate financial exposure from claims against the Council as freeholder, and ensure consistent, transparent protection for affected leaseholders. It will also underpin effective risk management across the Council’s housing stock, support compliance with lease obligations, and facilitate statutory reporting. The tender is open exclusively to insurers; brokers are expressly excluded from participation.
Insurers must adhere to the Landlord and Tenant Act 1985 Section 20 consultation requirement for Qualifying Long‑Term Agreements and provide coverage that meets the statutory property insurance standards for leasehold properties subject to freeholder insurance arrangements.
Description
Reading Borough Council (RBC) is seeking to procure a Third-Party Property Insurance Policy for leasehold residential properties where the Council retains the freehold interest, primarily properties sold under the Right to Buy (RTB) scheme. This will be a new standalone contract and will establish a long-term insurance arrangement to ensure that leaseholders have access to appropriate buildings insurance cover in accordance with the Council's obligations as freeholder and landlord.
The requirement covers:
• 229 leasehold properties sold under the Right to Buy scheme.
• 13 Shared Ownership houses.
• 1 mortgaged property at St Elizabeth Close.
• 16 detached garages leased to RTB leaseholders.
The property portfolio consists predominantly of flats within blocks and maisonettes where the Council retains the freehold ownership. In many cases, the lease agreement requires the Council, as Freeholder, to arrange buildings insurance on behalf of leaseholders and recover the associated premium through the service charge mechanism. Properties remaining within the Council's housing stock are covered separately and are excluded from this procurement.
A detailed property schedule has been prepared and includes information such as construction type, age of property, number of storeys and tenancy/subletting details where available.
The procurement is required to ensure that the Council continues to meet its legal and contractual obligations as freeholder by arranging suitable buildings insurance cover for leaseholders where required under the terms of the lease.
The contract will:
• Provide appropriate third-party Property insurance protection for leasehold properties where the Council retains the freehold.
• Mitigate potential financial exposure arising from claims against the Council as freeholder.
• Ensure compliance with lease obligations and landlord responsibilities where insurance arrangements are required.
• Provide a transparent and consistent insurance arrangement for affected leaseholders.
• Support effective risk management across the Council's housing portfolio.
As the proposed contract constitutes a Qualifying Long-Term Agreement (QLTA), the Council is required to consult affected leaseholders in accordance with Section 20 of the Landlord and Tenant Act 1985 prior to entering into the agreement.
Contract location: UKC
Communication: https://supplier.in-tend.co.uk/readingbc/home
Amendments:
Other additional information: Added a note. NOTE: This tender is for Insurers Participation only, Brokers are not allowed to participate in the ITT. Additional Info: The Price is including IPT and not VAT - the option is not available, hence, the clarification.
Submission address and any special instructions: https://supplier.in-tend.co.uk/readingbc/home
Tenders may be submitted electronically: allowed
Award decision date (estimated): 2027-02-01T23:59:59Z
Lot: 1
Lot value (estimated)
567.000,00 GBP including VAT
This contract is subject to renewal: Yes
Description of renewals: The length of the extensions will be +2 and +2 subject to internal review.
Award criteria:
| Name | Type | Weighting |
|---|---|---|
| Price | price | 70% |
| Quality Questions (3 sets) | quality | 30% |
Languages in which tenders or requests to participate may be submitted: En