Tyneside Flat Lease Extensions

Yarg

We are selling a Tyneside flat and realised the lease, currently at 65 years, needed to be extended. Our flat doesn't have a mortgage but our neighbours has, we have both engaged solicitors and the mortgage company has been contacted and has agreed to the extensions.
We thought it was a straightforward procedure but this has now been going on for 7 months, our solicitor tells us the mortgage company is holding things up. We have a very patient buyer waiting to go ahead, it is so frustrating. Has anyone had any experience of this or suggest a way forward please.
Thanks

eddddy

I guess it depends why the mortgage co are holding things up.

But... in theory, I don't see why your lease couldn't be extended now, whilst your neighbour waits to sort out their mortgage issues.

I guess your buyer would have to give an undertaking to allow your neighbours extension to go ahead - but I'd guess that would be achievable.

Maybe ask your solicitor if your lease extension can go ahead first.

Yarg

We have already asked our solicitor if ours can go ahead, but the mortgage company hold our lease so we need their agreement.
Also the buyer can't get a mortgage because of the short lease.
I have tried talking to the mortgage company but because it's not our account they wouldn't speak to me. We have asked our neighbours to ask what the hold up is, but no luck with that so far.

agrinnall

I still don't understand why the neigbour's lease extension has anything to do with you extending your lease. They are surely two separate agreements. I think you need to press your solicitor to sort this out for you, ignoring whatever delay your neighbour's mortgage company is causing them.

artyclarty

A Tyneside Flat is a rather unique situation when it comes to a lease. It is a bit complicated and if I tried to explain it I would inevitably get it wrong so have a link!
https://www.wardhadaway.com/updates/tyneside-flats/

I don't wish to be a pessimist but all you can really do is wait for the other owner. Keep the pressure on and good luck!

Yarg

The link to 'wardhadaway' is a great explanation of the way the Tyneside flat scheme works and being unique to this area it is hard to grasp.
I did fear we were in a situation that we can't do much about, I just didn't want to believe it. All fingers and toes are crossed !!!

NBL_BLUE_STAR

Have you made any progress on this issue?

Yarg

Hi I'm afraid not, it is now nearly 9 month's since we first engaged our solicitor. We are being told that he can only get information from our neighbours solicitor and they are saying the holdup is with the mortgage provider not reacting very quickly. This is a far cry from the information we were initially given, in the first email it was estimated to take 6-8 weeks and that our solicitor would contact the mortgage company. I understand that there may be complications that would take longer to sort out, but not this long.

Richard_Webster

Quite likely that the neighbour's mortgage company simply doesn't understand the Tyneside Flat concept and their solicitor should be educating it - but if it is one of these "online" allegedly cheap conveyancing outfits then they won't know themselves!

They should have a mortgage on both the neighbour's leasehold flat and the freehold of OP's flat - and therefore will need to consent to extending OP's lease as OP's freeholder's mortgagee.

I am assuming OP owns neighbour's freehold and neighbour owns OP's freehold. If at sometime in the past a lease was transferred without the freehold of the other flat then you have a major problem!

Probably someone in the mortgage company thinks it is freehold flat and just can't get their head round what is going on.

Really you need to ask the neighbour to get a proper explanation for the delay from their solicitors. If the solicitors can't give one (perhaps because they don't really understand what a Tyneside Lease is) then suggest they change solicitors. If the solicitors say mortgage company won't give an answer then suggest that solicitor writes a step by step explanation of the Tyneside Lease Concept and asks lender what their problem is.
They should make a complaint to lender if necessary..

Yarg

Thanks Richard, nothing has been transferred, so we thought it was quite straight forward.
The neighbours are in no hurry to get things sorted, so unfortunately I think we just have to sit it out.

I have tried to get information on how to move this on but no luck, in hindsight there are things we could have done but didn't know and were advised that this would only take a few months.
Firstly check that your solicitor is experienced in Tyneside flat properties, ask for approximate time scales. I understand that it can't be exact, but since then have checked with 3 other solicitors who told me straight away it can take a very long time.
Confirm fees, as we are paying some cost towards the other property lease, not even sure why, we just paid because we thought it would help move things on. Our solicitor has now asked for final payment, and said it may cost more than originally quoted.
It's a nightmare, as the property is empty, we are paying council tax and other amenities while we wait.