Homeowners ‘in limbo’ Amid 18-Year Freehold Transfer Delay

Residents of an acclaimed housing development report being “left in limbo” because of ongoing issues with their leasehold properties, including an 18-year delay by the developer Taylor Wimpey in transferring certain rights to an external property company. The Staiths South Bank development in Gateshead comprises approximately 600 residential units, including homes and flats, which were initially sold as leasehold properties. Under this arrangement, occupants are entitled to occupy their homes for periods extending up to 150 years, subject to annual ground rent payments made to a freeholder. Situated adjacent to the River Tyne, on the former grounds of the 1990 National Garden Festival, the estate’s design was a collaboration with fashion personality Wayne Hemingway, following his critique of the “Wimpeyfication” trend in new-build housing across Britain. The development received the Royal Institute of British Architects’ Housing Design Award in 2005, recognizing it as the top large-scale project. While some residents have successfully acquired their freeholds, other property owners within the development report feeling like they are “going round in circles” in their attempts to do so. Taylor Wimpey issued an apology for the “difficulties faced by some of our customers,” characterizing the situation as a “complex process.” Peter Heelas and his wife, Jean, have resided in their present home since 2018. Similar to other leaseholders at Staiths South Bank, their annual ground rent payment is currently £135, an increase from the original £100. Previously, Taylor Wimpey informed them that purchasing their freehold would cost £1,200, in addition to solicitor’s fees. Nevertheless, their property is categorized within Phase 3 of the development. This phase, alongside properties in Phase 4, is currently undergoing a process where the housebuilder is selling its leasehold and freehold rights. The company stated that it entered into an agreement in November 2006 to transfer these rights to Regisport, a company that was subsequently incorporated into Longterm Reversions (Harrogate) Limited in 2018. Mr. Heelas, who is in his 70s, expressed that acquiring the freehold would provide him with “absolute peace of mind.” He stated, “The ground rent is not a huge cost, but it’s a cost I just don’t want to continue to pay.” He further added, “I’d like to get this resolved as I don’t want to leave these problems to my family.” Mr. Heelas indicated that the situation became more frustrating when Taylor Wimpey emailed him in January, informing him that the freehold was available. Subsequently, they sent another message clarifying that the company had made an error regarding the phase his property belonged to. He remarked, “They did the same when we lived nearby in our first house on the estate from 2011.” Another homeowner, Suzanne Hutton, resides in a Phase 3 property and also owns a cafe and an adjacent flat within the estate. These latter two properties are designated as part of Phase 1, for which Taylor Wimpey maintains the rights. Ms. Hutton was informed in 2018 that the freeholds for these properties were in the process of becoming available for £1,200 each. She stated that progress has since stalled. Ms. Hutton commented, “The cafe [and flat] is my battle at the moment. I haven’t even started on the fight with the house.” She added, “It’s holding up my life massively. I’ve been going round in circles. You just don’t get any information.” She concluded, “They can’t have people in limbo for this long. I thought it would be done in a few months, not six years.” Taylor Wimpey stated that it is contractually obligated to proceed with the sale of freeholds in Phases 3 and 4, and expects this process to be completed next year. The company attributed the 18-year delay in the transfer to what is now Longterm Reversions to legal complexities concerning the allocation of properties to specific phases. For owners in Phase 1, such as Ms. Hutton, Taylor Wimpey indicated that they could initiate discussions with the company to purchase their property’s freehold. However, no explanation was provided for the six-year delay she has experienced to date. In a statement, Taylor Wimpey further commented: “We are sorry for the difficulties some of our customers have faced and the time this process is taking when trying to buy the freehold of their property at our Staiths development.” The statement continued, “We have so far completed the transfer of over 70 freeholds to customers where Taylor Wimpey had retained them.” It added, “For properties where the freehold is being transferred to a third-party company due to pre-existing contractual obligations, there has unfortunately been a significant delay.” Longterm Reversions stated that it concurred with Taylor Wimpey’s statement and had no additional comments. Mark Ferguson, the Labour MP for Gateshead Central and Whickham, informed the BBC that he held a meeting with Taylor Wimpey representatives last month “to relay the concerns of some Staiths residents.” He also noted that the company had committed to “look into” the specific cases he brought forward. Last month, the government declared its intention to reform the leasehold system across England and Wales by the conclusion of the current Parliament. Housing Minister Matthew Pennycook stated that commonhold, a system where individuals own their homes without an expiring lease, would become the standard form of tenure prior to the next election. Nevertheless, advocates cautioned that these changes might arrive too late to assist existing leaseholders caught in difficult situations. For further updates, follow BBC North East on X, Facebook, Nextdoor, and Instagram. Story ideas can be submitted to northeastandcumbria@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Information regarding our approach to external linking is available.