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Would you buy a Tyneside lease if you don't live in Tyneside?

(7 Posts)
Spindelina Mon 17-Nov-14 15:30:55

(or anywhere else where such things are heard of?)

My DF is in the process of buying a flat, and it has just come to light that it is a Tyneside lease. He's not somewhere where this is at all common. He's thinking about pulling out for this and other reasons.

How much of a pain is it to live with, compared to third party freeholder or share of freehold? How much of a pain to mortgage? (He doesn't need a mortgage, but thinking about resale.)

In case it's relevant, the flat one of two in a conversion with separate entrances.

ouryve Mon 17-Nov-14 15:32:34

I've never heard specifically of a Tyneside lease, but leasehold is a common arrangement for any flat.

ouryve Mon 17-Nov-14 15:33:38

Though just to add that the arrangement you're describing is actually known as Tyneside flats, for the benefit of other posters who may not know.

Remembermyname Mon 17-Nov-14 15:36:31

This is going to be not much help, but I grew up on Newcastle and didn't realise they were a local 'thing', but that style of housing is very popular. I knew loads of people living in them, seemingly without any hassle!

Photinia Mon 17-Nov-14 16:00:13

The arrangement of flats is fine, not a problem, and quite common locally. It's the arrangement of the leases that's the problem - sorry if that wasn't clear.

As far as we can tell from communications with solicitors (not all entirely clear!), it's what I know as a Tyneside lease (and what Google tells me is also called a crossover lease): the ground floor leaseholder owns the freehold for the top floor and vice versa. So as the ground floor occupier, you own a flying freehold which flies over your flat.

The normal arrangement round here would be either for a third party (normally the developer or their successor in title) to retain the freehold and collect a ground rent, or for a limited company to be set up to own the freehold, in which each of the leaseholders is a shareholder. He'd be fine with either of those arrangements.

Photinia Mon 17-Nov-14 16:04:15

From Googling, there can be issues with the roof/drains (whose responsibility are they? not a question if there is only one freeholder, whether that be a third party or a limited company) and with mortgaging.

The former point I think might be helped by having a local convention.

The latter point I'm not convinced by, seeing as mortgage providers are national operations and people get mortgages in Tyneside!

Spindelina Mon 17-Nov-14 20:13:45

Sorry, those last two posts were me. Not very good at this whole changing nicknames thing!

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