Howard and Margaret Phillips, aged 80 and 78, feel trapped in their four-storey Victorian home in Newcastle upon Tyne because extending the lease would cost them £100,000. The couple bought the property in 1998 for £123,000 and have wanted to downsize since 2012, but the short lease deters buyers who cannot get a mortgage.
The lease on their home has only 53 years remaining. To extend it by 90 years, the freeholder—St Mary Magdalene and Holy Jesus Trust—is demanding £90,000 plus fees. Howard described the amount as 'jaw-dropping' and 'extortionate', saying they feel 'held to ransom'. The trust, a charity established in the 12th century, is exempt from compulsory lease extension rules.
The couple initially did not worry about the lease when they moved in, as neighbours had extended leases cheaply. But in 2012, the trust refused all extensions. After campaigning and a House of Commons debate, the trust relented in 2018, but the quoted cost was £90,000. One neighbour paid £70,000 to extend a smaller property, but the Phillipses say they cannot afford the sum.
Margaret noted that the trust has never spent money on the properties, which were poorly renovated after World War II. The couple have invested heavily in renovations themselves. They now feel stuck, unable to sell or afford the lease extension.
