Frequently asked questions

Since the late 1990s, large landlords and brokers have added secret commissions to insurance premiums. In a 2023 report, the Financial Conduct Authority found that these commissions ranged from 10% to 60% of the premium.

The Financial Conduct Authority also found that most insurance brokers could not justify the level of the commissions charged.

You are likely to have been affected if:

(i) you live in a flat you own (with or without a mortgage)

(ii) you pay for insurance via your service charge (or make a separate payment to your landlord or your landlord’s broker for insurance)

(iii) your building is not owned or managed by the people who live in it.

No. We will ask landlords for these details on your behalf.

If the claim succeeds, leaseholders could receive between £1,500 and £3,500 each in compensation.

The amount will depend on the sort of building you live in, how long you have owned your flat, the extent of the secret commissions, whether we can claim interest and the period for which we are able to claim.

Also, see: “If I win, what is deducted from my compensation?”.

Velitor Law and Balance Legal Capital are partnering up to ensure leaseholders like you get the justice you deserve and the compensation you are entitled to.

Velitor Law is a law firm regulated by the Solicitors Regulation Authority that helps its clients bring claims against powerful institutions that have acted unlawfully. For more information about Velitor Law, visit their website here.

Balance Legal Capital is a leading litigation funder based in London. It provides money to enable groups of people who have been wronged by large corporations and other organisations to bring legal action that they could not afford to bring as individuals.

Balance Legal Capital is a funder member of the Association of Litigation Funders (ALF), the body responsible for the self-regulation of litigation funding in England and Wales. For more information about Balance Legal Capital, visit their website here.

We can sign most people up without any paperwork based on their address alone.

If you have sold your flat, or we cannot match your address to a landlord, we may need further information. We will write to you separately to obtain that information.

You can still join. We will ask you questions about this when you sign up.

Yes. Provided you have permission you can claim on behalf of a dead relative or someone who lacks mental capacity, for example if they have given you a power of attorney. We will ask you for details of this when you sign up.

Yes, you can still join. We will ask you questions about this when you sign up.

No. Your flat must be in England or Wales.

Yes. The owners of flats in England or Wales can join the claim wherever they live in the world.

Yes. We will need details of each property.

Yes, but we will need some details from you.

It doesn’t matter. Your claim will continue.

Yes, subject to two conditions:

Firstly, your Resident Management Company or Right to Manage Company must be required to buy insurance arranged by a freeholder or head lessor without any choice.

Secondly, a director of the Resident Management Company or Right To Manage Company must sign up on behalf of the company.

If you have any questions, please contact us for further information.

No. In most cases our sign-up process will identify your landlord from your address.

In some cases we will need further information. We will contact you separately.

No, we will obtain this information on your behalf.

The claim is on a “no win, no fee” basis. You won’t pay any money as the claim progresses.

If the claim succeeds then legal fees and expenses will be deducted from your compensation. If the claim does not succeed you will still not pay anything unless you left the claim early.

Also, see: “If I win, what is deducted from my compensation?”.

Typically claims such as this take several years. We will keep you regularly updated.

Yes. Your ‘landlord’ is the owner of the block. They are also known as the freeholder.

If you bought a flat (with or without a mortgage) you are a leaseholder and can join the claim.

No. A very limited few will not be able to pay compensation and so won’t be pursued. We will only pursue landlords and brokers who can pay compensation.

We will review your building and let you know whether we can progress your claim.

Unfortunately not. The Financial Ombudsman cannot help leaseholders with claims against landlords, insurers or insurance brokers for this type of insurance.

If you win then Velitor will deduct fees and costs from your compensation.

The fees are 40% of your compensation, excluding VAT. The costs are a maximum of £120.

For example if your compensation is £3,000 there would be a maximum deduction of £1,560 including VAT. You would then receive a minimum of £1,440.

But it could be that you will recover far more. If the landlords lose they will normally be required to pay some of your costs. If that happens you will keep more of your money because Velitor will reduce its 40% fee to reflect any costs recovered from the landlords.

In some leases there may be a provision that may entitle the landlord to recover certain legal costs from leaseholders via the service charge.

Velitor does not believe these provisions can be legally enforced by landlords. We will take steps to protect you from landlords trying to pass on their legal costs to you.