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Buying leasehold flat - building insurance issue


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I'm currently in the process of purchasing a leasehold flat for BTL.  Everything has been going smoothly, but now I have hit an issue with the insurance policy that the freeholder has for the development.  It specifically excludes flood protection in the policy.  I am not too concerned about this - although there is a river fairly close, lots of flood mitigation measures have been built over the past few years and the flat is not on the ground floor.  I am happy with the perceived risk of purchasing a property like this. 
However, my solicitor has basically said he will not sign off on the property until the issue is resolved by the freeholder.  He believes that this breaches the lease and would invalidate the mortgage which states adequate building insurance cover should be in place.  Everytime I ask him for an update, he just tells me no news - this has been the case for 2 weeks now.  Having originally had the offer accepted in March, things are really dragging now and I'm sure the vendor is as keen as me to complete the sale.
I really am frustrated to get this far (about to exchange contracts) and this roadblock be in place.  Surely if it was such an issue, none of the other 100 or so flats would have been able to go through the conveyancing process since the development was built a few years ago?   Does anyone have experience of this and can provide me with their opinions?

Many thanks,
Martin

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