A Conversation for Tips on Buying a House

Beware the Tyneside Flat agreement

Post 1

Mistress Marmalade - Keeper of Stars and Other Twinkly Things

The Tyneside Flat Agreement smiley - huh

This is a very bizzare 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. smiley - headhurts

The rent is 'peppercorn' which appears to be a valid amount to put on your mortgage application (much to my surprise!), basically neither owner pays anything.

Most confusing for everyone concerned (apparently dreamt up by an estate agent back in the 70's) and particular to the North East of England. Can make buying one of these flats difficult if the solicitor you're using is unfamiliar with this quirky proceedure.

All worth it in the end though cos both flats are jointly responsible for the building and there's no nasty landlord to raise rent or make major alterations to building. smiley - ok


Beware the Tyneside Flat agreement

Post 2

Ausnahmsweise, wie ├╝blich (Consistently inconsistent)

I tried something similar in Germany. A colleague and I bought a two family house. We planned to live in each other's half and pay each other rent. There would be tax advantages. However the Finanzamt (or someone) decided it was not "in the spirit of the law".
Awu


Beware the Tyneside Flat agreement

Post 3

Researcher 219823


Too late now but it sounds like you have or had a precedent to take it to the Hague. Not for those of us that don't like Hagueling.


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Beware the Tyneside Flat agreement

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