Buying: Tyneside lease?

HighLevel

Hello,
Purchasing a ground floor flat (1 other property above, but separate entrances etc - No common areas) which is covered by a "Tyneside lease" arrangement.

I have reached an impasse in the conveyancing.

My solicitor is insisting that as it's a leasehold property a Joint buildings insurance policy must be in place with the other flat and can't seem to grasp that its a specific type of leasehold.

• Other side are saying this is untrue and a joint policy is not required for a Tyneside Lease. Therefore can't provide a copy of a policy to satisfy my solictors aditional enquiries.
• My Solicitor is saying other side to pay an indemnity / Other side say no
• Other side say that joint policy not in place at present and definitely not required under a Tyneside Lease.
• My mortgage offer from Nationwide has a whole side of A4 listing insurance conditions - And a joint policy isn't one of them
• I've just rang Nationwide and they say refer to offer!

Help! This has been going on for god know how long now....Can anyone shed any light on the above......

I suspect my solicitor is in the wrong by they wont back down and let contracts exchange....

Gers

Heaton? Jesmond? Just nosy!

From - http://uk.practicallaw.com/0-503-5693?sd=plc

A scheme of development by which leases of certain flats in Tyneside are granted.

At first glance, a building comprising Tyneside flats resembles a single fronted terraced house but behind the facade there are two and sometimes three flats, one above the other. Each flat has a separate front and back door, and backyards with no internal communication between the households. Tyneside flats were built in the late 1800s as low-cost housing for the growing workforce.

Under a Tyneside flat scheme, each flat tenant is made the landlord of the other. By way of illustration, if there are two flats, on the grant of a lease of the ground floor flat to the ground floor flat tenant, the freehold for the upper floor flat is conveyed to the ground floor flat tenant. Similarly, on the grant of the lease of the upper floor flat to the upper floor flat tenant, the freehold for the ground floor flat is also conveyed to the upper floor flat tenant.

This type of arrangement is used in other parts of the country apart from Tyneside and is commonly used with maisonettes.

The scheme is also referred to as the criss-cross scheme and a crossover lease arrangement.

Each tenant enjoys privity of estate with the other and can enforce the other's covenants directly without recourse to an external landlord. The scheme depends on the flat lease always being transferred with, and to the same person as, the freehold reversion of the other flat. If there is a mortgage, both should be mortgaged to the lender.

From - https://en.wikipedia.org/wiki/Tyneside_flat#Legal_issues

Under a Tyneside flat scheme, each flat tenant, even if holding the freehold of their own flat, is made the landlord (and thus reciprocally the tenant) of the other.[10] This allows the responsibilities to be enforced legally, without requiring the existence of an external landlord or management committee over the whole building.

I would have expected a local solicitor to be well versed in the concept and legalities of Tyneside flats as there are so many.

Good luck in this.

HighLevel

Hi Gers, many thanks for your reply - Much appreciated.

It's frustrating - From my perspective if my solicitor is saying my lender requires a joint policy then I would expect it to be a condition of the Offer?

The seller confirms their policy is not joint (and I have been sent a copy of this) and their Solicitor is adamant one is not required.

As you say this should be 'bread and butter' for a solicitor......

Gers wrote: »

Heaton? Jesmond? Just nosy!
.

Low Fell, so other side of the Tyne.

xylophone

Does this help at all?

http://www.wardhadaway.com/knowledge/tyneside-flats/

When you buy a Tyneside flat you will buy the Leasehold interest in the property you will be living in, and the Freehold interest in the corresponding flat.

If you are buying your Tyneside flat with a mortgage then the mortgage will be registered against both the Freehold and Leasehold interests.

The extent of the downstairs flat includes the foundations of the building. The extent of the upstairs flat includes the stairs, hallway leading to it, roof and roof void. It is important to be mindful of the extent of the property, particularly when you are arranging your buildings insurance.

For example, the upstairs flat owner is responsible for insuring the roof and roof void as well as their flat and the downstairs flat owner is responsible for insuring their own flat as well as the foundations.

There will be a plan of the property you are buying attached to the Lease. The extent of the flat will usually be edged in blue on that plan. Those areas which are the exclusive ownership of the flat will be edged red, such as a rear yard or front garden, and any areas that are shared with the corresponding flat will usually be hatched black i.e. a shared courtyard.

There will be “common installations” which serve both properties, and for which you and the corresponding flat owners will be jointly responsible. These usually include guttering, downpipes, gas and water pipes.

There is also the South Tyneside Flat Lease scheme which again applies to flats in a building. In this situation, one flat owner has the Freehold to the whole of the building and insures the whole building.

HighLevel

xylophone wrote: »

Does this help at all?

Thanks xylophone, very helpful.

Gers

HighLevel wrote: »

Low Fell, so other side of the Tyne.

Lovely bit - now that Gateshead College has gone the area is looking so much better. We lived in Jesmond for many years, but not in a Tyneside flat so I have no personal knowledge to help you with.

I hope you get to enjoy your new flat.