What is a Tyneside Lease?

A Tyneside lease is a lease type usually common to the North-East part of England and it refers to a property which is usually split into two or more flats. These leases are for terraced properties that are two storeys. You would usually own the freehold for the flat you reside in and the freehold for the one which you don’t, and vice versa. They are identifiable by their two front doors, one per flat. Depending upon the terms of the lease any arrangements for structural repairs may be shared.

Whilst each flat is legally dependant upon the other, there is no common areas shared by both flats. Each flat has its own access, the first door will lead to the ground flat whereas the second door will have a staircase leading to an upstairs or first floor flat.

There are two common types of Tyneside leases.

A North Tyneside Lease is the most common type of criss-cross lease and it involves a freeholds being created for each flat. The leasehold owner of the ground floor owns the freehold for the upper floor flat and vice versa. However, responsibility for the maintenance of the building structure is split between both owners. Ground rent will be payable, however with Northern Tyneside leases it will usually be peppercorn rent which is a very nominal fee.

With a South Tyneside Lease, one owner will have the freehold for the entire building and therefore both flats. The freeholder in this instance will be expected to insure the property in their name. The leasehold flat will be responsible to share any fees associated with  service charge, insurance, maintenance and repairs. Whilst ground rent will be payable, it is likely to be a peppercorn figure as with North Tyneside leases.

What are the disadvantages of a Tyneside lease?

The solicitors acting in the transaction must ensure that the leasehold and freehold title are transferred correctly to avoid any issues arising for both owners. As this type of lease is found in the North East, it may be best to consult a solicitor who has previous experience with this type of purchase. The second issue is, not all mortgage lenders will be prepared to lend on this type of property, please speak to your mortgage broker for more.

When selling, both the leasehold and the freehold title must be transferred to the new owner. This ensures that you will not have to chase an absentee freeholder in the future. In these cases, the freehold title is priced at £1.

If you are looking to buy or sell a Tyneside lease property, please contact us.