Understanding Tyneside Leases

The Two Types of Tyneside Lease

A Tyneside lease is a conveyancing structure commonly used where a house has been converted into two flats, usually one ground floor flat and one upper floor flat.

When buying a flat, apartment or maisonette, the property is most commonly purchased on a leasehold basis. A leasehold property in the UK is a type of ownership where you own the property itself, such as a flat or apartment, for a fixed period as specified in a lease agreement, but you do not own the land on which it stands.

Tyneside leases are commonly found in the North East of England, although similar lease structures can also be found in other parts of England and Wales. Tyneside leases are also long leases, frequently 999 years, with peppercorn or nominal ground rent. Tyneside leases are split into two parts, North Tyneside leases, commonly known as criss cross leases, and South Tyneside leases.

North Tyneside Leases

A North Tyneside lease, commonly known as a criss cross lease, is a lease where the owner of one flat/apartment is the landlord of the other. For example, take this scenario where Caroline holds the leasehold title to the ground floor flat and the freehold title to the upstairs flat, and Andy holds the leasehold title to the upstairs flat and the freehold title to the ground floor flat. The purpose of this arrangement is to allow each owner to enforce lease covenants against the other, particularly in relation to repairs, insurance, access and alterations.

North Tyneside leases share equal responsibilities, where the freeholder of the upper floor flat is responsible for maintaining the roof and the freeholder of the ground floor flat is responsible for maintaining the foundations of the building. However, there are some responsibilities that are shared between the owners, such as the water pipes or the electrical wirings that run along the entirety of the building.

South Tyneside Leases

A South Tyneside lease is where one flat owner owns the freehold of the entire building and the other flat owner owns a leasehold interest in their flat. This is slightly different from a North Tyneside lease as there is no criss cross between the owners; it is not a reciprocal criss-cross arrangement, as one owner owns the freehold of the whole building, subject to the other owner’s leasehold interest.

South Tyneside leases can raise lender concerns because of their more complex title structure, particularly the perceived “freehold flat” issue and the lack of reciprocal equality between the two owners. The concern with freehold flats is that positive obligations, such as repair, insurance and contribution obligations, are generally harder to enforce between freehold owners than under leasehold covenants. However, in a South Tyneside arrangement, the freeholder typically owns the freehold of the whole building subject to a lease of part, rather than a true standalone freehold flat.

The arrangement also lacks the reciprocal equality of a North Tyneside lease, as one owner is structurally the freeholder/landlord and the other is the leaseholder/tenant. For example, Amy owns the freehold of the entire building, which consists of a ground floor flat and an upstairs flat. Amy occupies the upstairs flat, while Jeremy owns a leasehold interest in the ground floor flat. If roof works are required and Amy, as freeholder, arranges the works at a total cost of £3,000, she may be entitled to recover a contribution from Jeremy if the lease gives her a clear right to do so. The amount recoverable will depend on the contribution provisions in the lease. Conversely, if Jeremy wishes to carry out works affecting only his own flat, he may be responsible for those costs himself subject to any consent requirements or obligations contained in the lease. This can create an unequal relationship between the freeholder and the leaseholder.

Conveyancing Risks in Tyneside Leases

The complex conveyancing structure of Tyneside leases often carries higher risks when purchasing properties with such leases. Some key risks to flag are:

• Defective or missing transfer of the reciprocal title;
• Inadequate lease covenants for repair, access or insurance;
• Difficulty enforcing obligations against an uncooperative neighbouring owner;
• Lender reluctance, especially on non-standard or South Tyneside lease arrangements;
• Historic alterations without necessary consent;
• Unclear responsibility for the roof, foundations or shared services;
• Lack of clear fire safety arrangements for a two-flat building; and
• Missing or inadequate Land Registry restrictions and power of attorney provisions.

We understand that Tyneside leases are complicated, and obtaining legal advice from lawyers is crucial, in order to avoid problematic risks associated with Tyneside leases. For more information or to request advice, our experienced leasehold solicitors can provide tailored guidance on your specific circumstances.

Key Issues to Check Before Buying a Tyneside Lease Property

Before purchasing a Tyneside lease property, it is important to understand whether the property is held under a North Tyneside or South Tyneside lease structure. The title register and lease should be reviewed carefully to confirm what is being purchased, what freehold or leasehold interests are included, and whether all relevant titles are being transferred correctly.

The lease should clearly set out the rights and obligations of each owner, including responsibility for the roof, foundations, external walls, drains, pipes, shared services, insurance and access for repairs. It should also contain adequate rights of support, shelter and protection, as each flat is structurally dependent on the other.

Mortgage lender requirements should be checked at an early stage, particularly where the title structure is unusual or where both leasehold and freehold titles need to be charged to the lender. If the lease is defective or unclear, a deed of variation, corrective transfer, Land Registry restriction or further lender approval may be required before the transaction can proceed.

Extending Your Tyneside Lease

A Tyneside leaseholder, may use the ordinary statutory procedure under the Leasehold Reform, Housing and Urban Development Act 1993 to claim a new lease or extend their current lease, provided the usual qualifying conditions are satisfied.

Under the Leasehold Reform, Housing and Urban Development Act 1993, you can extend your lease anytime by serving a Section 42 notice and offering a premium, which is known as a statutory (formal) lease extension. The freeholder will respond with a counter notice, and you can negotiate a fair price for the premium.

However, an alternative route is to do an informal lease extension, which is privately negotiated with the freeholder outside the 1993 Act. This method is more preferable in Tyneside leases as the freeholder(s) and leaseholder(s) are residing in the same building.

Tyneside leases can be extended both ways; to find out more information on the lease extension process, please look at our blogs which discuss our leasehold and conveyancing matters or contact Starck Uberoi Solicitors by email at solicitor@starckuberoi.co.uk or call 020 8840 6640.

If you need an estimate of costs for your lease extension, feel free to try our free and instant lease extension calculator.

How Starck Uberoi Solicitors Can Help

Our knowledgeable leasehold solicitors are committed to providing an efficient and effective service in all matters and can help you with your lease extension with ease. Our conveyancing solicitors have vast experience in dealing with a wide variety of residential conveyancing and property matters.

We are Law Society Accredited under the Conveyancing Quality Scheme (CQS) in recognition of the excellent standard of conveyancing service we offer. We take a client focused approach dedicated to making the conveyancing process as quick and easy as possible, and we offer comprehensive and convenient no obligation online conveyancing quote. We are also trusted conveyancers on the lender panels for the majority of high street lenders including Barclays, Halifax, HSBC, Nationwide, NatWest and Santander.

We go above and beyond to provide a comprehensive service to all clients for each matter. To book an appointment, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk. Our offices are located in Brentford, Richmond, Ealing, London Belgravia and Canterbury, all within easy reach by public transport. Our partner, Raminder Uberoi, can also provide a Notary Public service at any of our London offices.