Tyneside Apartments (flats) and Tyneside Leases

The properties in this area are mainly freehold, but if it is a “Tyneside apartment” they have an unusual (normally) 999 year cross Tyneside lease. Here is an explanation, which makes this type of property particularly attractive as it enables the owners to cut out a third party and any payments on an annual or other basis. It also helps inflate value because of this attraction. This is an excerpt from a BBC document.

“This is a very bizarre arrangement whereby both the upper and lower flats are bought leasehold but the upper flat owns the freehold for the lower flat and the lower flat owns the freehold for the upper flat. It was apparently dreamt up by an estate agent back in the 1970s. The rent is 'peppercorn' which appears to be a valid amount to put on your mortgage application, basically neither owner pays anything. This is most confusing for everyone concerned and particular to the north east of England. It can also make buying one of these flats difficult if the solicitor you're using is unfamiliar with this quirky procedure. However, it's all worth it in the end, as both flats are jointly responsible for the building and there's no nasty landlord to raise rent or make major alterations to building. “

So if any of your clients want to buy a “Tyneside apartment” use a local solicitor. They are custom built, not normally conversions from houses, very popular and excellent for rental purposes.