Plain english lease

Plain English Lease Updated March 2008

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INDEX Clause

Page Interpretation

4 7

1.3

Seisin: The Council will still own the freehold of the flat/maisonette, any gardens and outbuildings Agreement for Lease

8

1.4

Grant and demise

8

Term

8

Rent

8

2

Lessee’s Covenants

9

3

Further Lessee’s Covenant Payment of Management

10

1 1.2

Charges Future Liability

11

Council’s Contribution

11

Major Structural Repairs

12

Recovery of costs for Council carry out repairs

12

4

Disposal within 5 years

14

5

Right of First Refusal

15

6

The Council’s Covenants

17

7

Reciprocal

17

Quiet enjoyment

18

Council’s Powers of Management

18

Roads etc

20

Marginal Notes

20

9

Rights of Re-entry

20

10

Service of Notices

22

8

3

11

Disputes etc

22

12

Certification as to value

23

First Schedule (Part 1) The Estate

24

Second Schedule (Part 2) The Building

24

Third Schedule (Part 3) The Reserved Property

24

Fourth Schedule (Part 4) The demised premises/Right of Way – fixtures fittings etc Fifth Schedule (Part 5) Right and Easements granted to the Lessee Sixth Schedule (Part 6) Exceptions and Reservations

26

Seventh Schedule (Part 7) Lessee’s Covenants

33

Eighth Schedule (Part 8) Regulations to be observed by the Lessee Ninth Schedule (Part 9) Council’s Covenants to be observed by the Council at the Lessee’s expense Tenth Schedule (Part 10) Details of Lessee (The Term) The due proportion exact as added etc

43

33

27 30

48 52

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HOUSING ACT 1985 H. M. LAND REGISTRY LAND REGISTRATION ACTS 1925 - 2002 County

-

Tyne and Wear

District

-

Newcastle upon Tyne

Title Number

-

Property Flat No:-Date

THIS LEASE is made the

day of

Parties

Two thousand and seven BETWEEN THE COUNCIL OF THE CITY OF NEWCASTLE UPON TYNE (hereinafter called "the Council") of the one part and the person or persons specified in the Tenth Schedule hereto (hereinafter called "the Lessee") of the other part

This Lease starts on the above date and is between Newcastle Upon Tyne City Council (called “the Lessor” in this Lease) and you (called “the Lessee” in this lease).

In the rest of the ‘Plain English’ explanations, we wil call the Council ‘we’, ‘our’ or ‘us’ and call the Lessee ‘you’, and call the building in which your flat/maisonette is located, ‘the block’.

WHEREAS Interpretation

(1)

In this Lease save as otherwise provided or unless the context otherwise requires

(A)

"the Council" includes the persons or body for the time being entitled to the reversion immediately expectant on the determination of the term hereby granted

In this Lease ‘the Council’ means us or our successors who own the freehold to your flat/maisonette.

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(B)

"the Lessee" includes the persons for the time being entitled to the term hereby granted and if at any time the Lessee shall consist of more than one person all the covenants and obligations on the part of the Lessee herein contained shall be deemed to have been made jointly and severally by all such persons and masculine gender shall include feminine and vice versa and if two or more persons are named as Lessee they shall hold the demised premises upon trust to sell the same and to stand possessed of the net proceeds of any such sale and of the net rents and profits until sale upon trust for themselves as beneficial joint tenants and pending the sale of the whole they or other trustees for the time being shall until the expiration of 125 years from the date hereof (which period shall be the perpetuity period applicable to the Lease and is hereinafter called "the perpetuity period") have the same full and unrestricted powers of dealing with or disposing of the demised premises for any purpose and in any manner in all respects as a sole absolute owner thereof

The Lessee means you and any other person who has signed the Lease with you. It also means that anyone who you sell, transfer, give or leave this property to will also be bound by the agreement. You (and they) are liable individually (and together) for all the agreements and obligations in this lease.

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(C)

"the owner" means the lessee for the time being of a flat demised upon terms similar to those contained in this Lease

The “owner” means other leaseholders with similar agreements to yours.

(D)

References to any Act of Parliament Order Regulation or Direction shall be deemed to be references to that Order Regulation or Direction as from time to time amended extended or reenacted

In the event that Parliament alter the Acts and other laws referred to in this agreement, it is the amended version which be applied to theis agreement.

(E)

"the Estate" means the Estate described in the First Schedule hereto

Means the housing estate (if any)named on page 24 of this Agreement.

(F)

"the Building" means the premises described in the Second Schedule hereto

This means the block (or pair) of flats that you live in and which is described on page 24 of this agreement.

(G) "the Reserved Property" means the property described in the Third Schedule hereto This refers to those part s of the property which is still fully owned by us and which consists of everything listed at page means everything listed at Page 24 to 25 under the heading “Reserved Property”.

(H)

"the demised premises" means the premises described in the Fourth Schedule hereto

This means the flat/maisonette that is leased to you under this Agreement and which is described in more detail on page 26 under the heading “Demised Premises”.

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(I)

"the Term" means the term of years hereby granted as specified in the said Tenth Schedule hereto

This Lease Agreement lasts for 125 years from the day it starts.

(J)

"the due proportion" means the proportion of Management Charges (hereinafter defined) payable by the Lessee pursuant to clause 3(A) hereof as specified in the said Tenth Schedule hereto

This means the amount stated on page 52 which represents the amount payable by you in respect of works and services provided to the block by us.

Seisin

(2)

The Council is seised of the freehold property consisting of the Building and the grounds thereof (if any)

We are the freehold owner of the block in which your flat/maisonette is situated, together within any grounds accompanying the block.

Agreement for Lease

(3) Pursuant to the Housing Act 1985 (hereinafter called "the 1985 Act") as amended by the Housing Act 2004 (hereinafter called "the 2004 Act" the Council has agreed with the Lessee for the grant to the Lessee of the demised premises for the consideration and at the rent and on the terms and conditions hereinafter appearing

We agree to lease you your flat/maisonette on the terms and conditions in the Agreement.

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NOW THIS DEED WITNESSETH as follows Grant and

1. IN CONSIDERATION of the sum of

Demise POUNDS (£

) paid by the Lessee to the

Council (the receipt whereof the Council hereby acknowledges) and of the rents hereinafter reserved and the Lessee's covenants hereinafter contained the Council hereby demises with full title guarantee unto the Lessee ALL THAT the demised premises TOGETHER with the rights and easements set out in the Fifth Schedule hereto EXCEPT AND RESERVING unto the Council as set out in the Sixth Schedule hereto TO HOLD the same (subject to the stipulations conditions and all other rights easements liberties and privileges to which the demised premises or any part thereof are now or may at any time during the Term

continuance of the Term be subject) unto the Lessee for the Term to the intent that the existing tenancy of the Lessee shall forthwith merge and be extinguished in the Term Upon receipt of the above money, we will lease to you the flat/maisonette described on page 26 under the heading ‘Demised Premises’ and give you the rights listed on pages 26 to 30. There are a number of rights which we keep for ourselves and these are listed on pages 30 to 33.

If you already have a tenancy of this flat/maisonette, it will be replaced by this lease and your old tenancy agreement will cease to exist.

Rent

YIELDING AND PAYING therefor the yearly rent of Ten Pounds (£10.00) in advance on the First day of April in every year the first payment thereof being a

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proportionate part of a year's rent for the period from and including the date hereof up to and including the Thirty first day of March next and by way of a further yearly rent during the Term all moneys due to the Council pursuant to the provisions of Clause 3(A) hereof such further yearly rent to be payable by yearly payments in advance on the First day of April in each year You must pay the whole rent (ÂŁ10.00) plus any management charges in advance on the 1st April every year.

Lessee's Covenants

2. THE Lessee hereby covenants with the Council and with and for the benefit of the lessees from time to time during the currency of the Term of the other flat or flats comprised in the Building

(A)

To observe and perform the covenants contained in the Seventh Schedule hereto

You agree to all the rules and obligations placed on you that are listed on Pages 33 to 43 of this Agreement.

(B)

To observe and perform the rules and regulations set forth in the Eighth Schedule hereto

You agree to all the rules and obligations placed on you that are listed on Pages 43 to 48 of this Agreement.

(C)

To observe and perform the covenants conditions restrictions and stipulations (if any) referred to in the Eleventh Schedule hereto so far as the same relate to the demised premises and to indemnify the Council from and against all actions costs

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liabilities claims and demands arising out of any future breach thereof You agree to any rules and obligations placed on you that are listed on pages 52 of this Agreement. You also agree to compensate us in respect of any liability we may have to a third party as a result of yur failure to comply with those rules and obligaitons.

3. THE Lessee hereby further covenants with the Council as follows:To pay

(A) To pay to the Council such annual sum as may be

Management

notified to the Lessee by the Council from time to

Charges

time as representing the due proportion of the reasonably estimated amount required to cover the costs and expenses incurred or to be incurred by the Council in carrying out the obligations or functions contained in or referred to in this clause and Clauses 6 and 8 hereof and the covenants set out in the Ninth Schedule hereto for each financial year running from and including the First day of April in each year up to and including the Thirtyfirst day of March in the following year (such cost and expenses being hereinbefore and hereinafter together called "the Management Charges") such estimated amount to be payable yearly in advance on the day specified for payment of rent hereunder the first payment being a proportionate part for the period from and including the date hereof up to and including the Thirty first day of March next

You agree to pay us your share of the yearly costs of managing and maintaining the block/Estate in which your flat/maisonsette is located.

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and IT IS HEREBY DECLARED that the Management Charges may (without prejudice to the generality of the foregoing) include such amounts as the Council shall from time to time consider necessary to put to reserve to meet the future liability of carrying out major works to the Building and Reserved Property or to the demised premises You may have to pay your share of the cost of major future works to the block/Estate in advance of those works being carried out.

PROVIDED that (i)

the Council will make a contribution towards the management charges which is equal to the due proportion multiplied by the number of flats for the time being forming part of the Reserved Property

We will make a contribution toward the management charges in a sum equal to your share multiplied by the number of flats/maisonettes in the block which we still own and which have not be leased to others. (ii)

in determining the Management Charges statutory provisions for the time being in force relating thereto shall at all times be complied with

We will follow the law when calculating the amount of management charges.

(B)

To pay to the Council on demand the amount by which the estimated sum paid by the Lessee to the Council under sub-clause (A) of this Clause in respect of the Management Charges for each financial year as aforesaid (or in the first year of

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the term part of a financial year) is less than the due proportion payable by the Lessee of the total moneys properly and reasonably expended or retained by the Council constituting the Management Charges for such financial year You must pay us the management charges on demand.

(C)

That if the amount by which the estimated Management Charges paid by the Lessee to the Council under sub-clause (A) of this clause is more than the due proportion payable by the Lessee of the total moneys properly and reasonably expended or retained by the Council as above the excess so paid shall be carried forward by the Council to be credited to the account of the Lessee

If at the end of any year it is apparent that the amount we spent on managing and maintaining the block/Estate is less than the management charges you paid for that year, then we will credit this extra payment to your account for the following year.

(D)

That major structural repairs and replacement are to be charged separately as they arise but the Council will reserve the right to require the payment of such reasonable sums as the Council consider necessary to put to reserve to meet the future liability of carrying out such major works

Major structural repairs and replacements will be charged to you separately. We are entitled to request that you pay us a reasonable sum to be kept in reserve to be put toward the cost of future major works.

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(E)

That by virtue of Schedule 6 paragraphs 16 (B) and 16 (C) of the 1985 Act the Council's recovery of costs for carrying out repairs or works of improvement to the demised premises and/or the Building is regulated for an initial period (being generally five years from the date hereof) to the estimated contributions (together with any inflation allowance) contained in the Offer Notice served on the Lessee by the Council under Section 125 of the 1985 Act prior to the grant of this Lease BUT it is hereby agreed that in the event that the Council shall after service of the Offer Notice but prior to the grant of this Lease have carried out works of repair to the demised premises or the Building (and have if required served notice in accordance with Section 20 of the Landlord and Tenant Act 1985 or any statutory modification or re-enactment thereof in respect of the cost of these works) or shall have carried out works of improvement to the demised premises or the Building THEN the initial period for the purposes of Schedule 6 paragraph 16 (B) (4) (a) of the 1985 Act or any statutory modification or re-enactment thereof shall commence on the date immediately preceding the carrying out of such works of repair or improvement and the Lessee may at the Council's discretion pay (if so demanded by the

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Council) the costs of the said repairs or works of improvement During the first five years of this agreement, the charges we can ask you to pay to cover the cost of repairs and improvement works are limited to the amounts estimated in the Offer Notice served on you prior to the grant of this lease. But if we have to carry out works to your block after the Offer Notice was served on you but before you signed this Lease, then we can charge you for these works.

Repayment

4. DISPOSAL within five years

Discount

4.1

The amount of the discount as calculated under S129 of the 1985 Act is ÂŁ represents

which

% of the Council's current

valuation of the Property The price you paid for your flat/maisonette is based on the market value of the property less a percentage discount. The amount of discount you received is stated above.

4.2

The Lessee for himself and his successors in title hereby covenants with the Council that if within five years from and including the date hereof there shall be a disposal (meaning an assignment of this Lease or the grant of a sublease whether in any such case of the whole or part of the demised premises for a term of more than twenty-one years otherwise than at a rack rent (not being a mortgage term) but not including an exempted disposal pursuant to the 1985 Act or an order under S24 of the Matrimonial Causes Act 1973 or S2 of the Inheritance (Provision for Family and Dependants) Act 1975 and not a vesting in a

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person taking under a will or on an intestacy) the Lessee or his successors in title will pay to the Council on demand such sum ("the discount repayment sum") as shall be calculated in accordance with the provisions of Section 155 of the 1985 Act as amended by Section 185 and Section 186 of the 2004 Act such discount repayment sum shall be reduced by one fifth for each complete year which shall elapse between the date of this Lease and the date of that disposal PROVIDED NEVERTHELESS that if there shall be more than one such disposal the Council shall be entitled to demand payment only on the first one If within the first 5 years of this lease you sell/transfer the lease to a another person, or you sub-let the flat/maisonette on a lease for a period of more than 21 years, then you will be required to pay to us an amount of money equivalent to some or all of the discount you received when purchasing this lease. The maximum you will be required to repay is the amount stated in the previous paragraph numbered 4.1. The amount you will have to repay will reduce by 1/5th for each complete year you have remained in the property.

We can only ask for this money back on the first sale/transfer of your flat/maisonette.

Right of First Refusal

5. THE Lessee for himself and his successors in title hereby covenants with the Council that the Lessee will not during the period of 10 years commencing from and including the date of this Lease make a relevant disposal (meaning an assignment of this Lease or the grant of a sublease whether in any such case of the whole or part of the demised premises for a term of more

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than twenty one years otherwise than at a rack rent (not being a mortgage term) of the demised premises which is not an exempt disposal pursuant to the 1985 Act or an order under S24 of the Matrimonial Causes Act or S2 of the Inheritance (Provision for Family and Dependants Act) 1975 and not a vesting in a person taking under a will or an intestacy unless the Lessee or (where appropriate) his successor in title has first offered to sell the demised premises to the Council (or such other person or body nominated by the Secretary of State or other appropriate Government Office) in accordance with and subject to the provisions and prescribed conditions of S156A of the 1985 Act Provided that the Lessee agrees that the provisions of this clause shall be registerable as a local land charge pursuant to the provisions of S156a of the 1985 Act and further the Council and the Lessee do now apply to the Registrar of HM Land Registry to enter a restriction in the appropriate registers at HM Land Registry relating to the provisions of this clause 5 During the first ten years of this lease you cannot sell or transfer your lease to a another person, or sub-let your flat/maisonette on a lease for a period of more than 21 years, without giving us the chance to buy it back from you first.

You agree that our right to first refusal shall be registered with HM Land Registry as a restriction against the property.

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The Council's

6. THE Council hereby covenants with the Lessee

Covenants

that the Council (at the expense of the Lessee as herein provided) will perform and observe and carry out or cause to be carried out the covenants and obligations set out in the Ninth Schedule hereto and the obligations on its part herein contained

We agree to perform and carry out our obligations as listed on pages 48 to 51 of this agreement.

Reciprocal

7. THE Council hereby further covenants with the

Covenants

Lessee that (A)

It will require every person to whom it shall hereafter grant a lease of the other flat or flats comprised in the Building or any of them to enter into covenants and regulations with the Council similar to those herein contained and that at the request and cost of the Lessee or any mortgagee and upon the prior payment to the Council by the Lessee or any mortgagee of such sum as the Council may reasonable require in respect of such costs it will enforce the said covenants and regulations against the Lessee or Lessees of any such flat or flats

Any flats/maisonettes leased to others will be done on an agreement similar to this one. We may take action to enforce the rules contained within this and other leases if we are asked to do so by a leaseholder or mortgagee. Prior to taking any such action, we are entitled to ask the requesting leaseholder/mortgagee to pay us a sum of money to cover the anticipated costs of such action.

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Quiet

(B)

Enjoyment

The Lessee duly paying the rents hereby reserved and observing and performing all and every the covenants conditions restrictions regulations obligations and agreements on his part herein contained shall peaceably hold and enjoy the demised premises (together with the rights hereby granted) for the Term without any interruption by the Council or any person lawfully claiming under or in trust for it

If you continue to pay the ground rent and management charges and keep to the rules of this agreement, you will be entitled to live in peace in your flat/maisonette without any interference from us.

8. IT IS HEREBY AGREED AND DECLARED as follows The Council's

(A)

That the Council shall at all times during the

Powers of

Term manage the Building in a proper and

Management

reasonable manner

We agree to manage the block properly.

The Council shall be entitled (i)

to appoint if the Council so desires managing agents for the purpose of managing the Building and to remunerate them properly for their services

We can appoint and pay managing agents to manage the block on our behalf.

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(ii)

to employ architects surveyors solicitors accountants contractors builders gardeners and any other person firm or company properly required to be employed in connection with or for the purpose of or in relation to the Building or any part thereof and pay them all proper fees charges salaries wages costs expenses and outgoings

We can employ and pay other people or a firm to assist us in managing and maintaining the block.

(iii)

at any time during the Term to negotiate and arrange insurance cover in respect of its obligations under this Lease and at its own discretion retain any benefit commission or bonus attributable to or arising out of any such negotiations arrangements and/or placing of the Council’s insurance cover

We can arrange insurance to cover our responsibilities under this Agreement and we can keep any benefit from this. (iv) to delegate any of its functions under Clause 6 and sub-clause (A) (i) (ii) and (iii) of this clause and the Ninth Schedule hereof to any firm or

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company whose business it is to undertake such obligations upon such terms and conditions and for such remuneration as the Council shall think fit We can pay a firm or company to carry out our responsibilities under this agreement.

Roads etc

(B)

That no estate or interest in the soil of any road or footpath adjacent to the demised premises is or shall be deemed to be included in this demise

You do not own or have any legal interest in any roads or footpaths adajacent to your flat/maisonette.

Marginal Notes

(C)

The marginal notes and plain English explanations appearing in this Lease are inserted for the purposes of convenience only and shall not affect in any way the meaning construction or interpretation of these presents

The underlined headings which appear in the margin (to the lefthand side of this agreement) and the plain english explainations contained within these blue boxes are there to help you understand the contents of the lease but do not affect the meaning of this agreement.

Rights of

9. IF and whenever the rent hereby reserved or any

Re-entry

part thereof shall be unpaid for twenty-one days after becoming payable (whether formally or legally demanded or not) or if and whenever the Lessee shall not observe and perform all and every the covenants conditions restrictions regulations obligations and

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agreements on the part of the Lessee herein contained then and in any such case it shall be lawful for the Council or any person or persons authorised by the Council in that behalf to re-enter the demised premises or any part thereof in the name of the whole and to repossess and again enjoy the demised premises as in their first and former state notwithstanding anything herein contained to the contrary and thereupon the Term shall cease and determine but without prejudice to any right of action or remedy of the Council in respect of any antecedent breach of any of the covenants on the part of the Lessee herein contained PROVIDED ALWAYS that the right of re-entry and forfeiture hereby granted shall not become exercisable unless notice specifying the breach or breaches is first served by the Council upon any Mortgagee under any subsisting mortgage of which notice shall have been given to the Council pursuant to the provision in that behalf hereinafter contained and default shall have been made by such Mortgagee in making good the breach or breaches so specified for twenty one days after service upon him of such notice If the ground rent and/or management charges which you are required to pay under this agreement remain unpaid for a period of 21 days or more and/or you fail to comply with any of the rules or obligations contained within this agreement, we will be entitled to re-enter the property and terminate your lease. If we have been notified of the existence of a mortgagee, then before exercising any right under this clause we must serve the mortgagee with a notice informing them of your breach and giving them 21 days to make good the breach.

Service of

10. ANY notice under this Lease shall be in writing

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Notices

and any notice to the Lessee shall be deemed to be sufficiently served if left addressed to the Lessee at the demised premises or sent to the Lessee by post and any notice to the Council shall be deemed to be sufficiently served if addressed to the Council’s Head of Legal Services for the time being of the Council and delivered to her personally or sent to her by post or left at the offices for the time being of the Council

Any notice we need to serve on you will be sent to the address of the flat/maisonette to which this agreement relates.

Any notice you serve on us under this agreement should be delivered by hand or posted to the Head of Legal Services at Newcastle City Council, Civic Centre, Newcastle upon Tyne NE99 2BN. Disputes etc

11. IF any dispute or difference shall arise between the Council and the Lessee touching the determination in a particular manner or on particular evidence of any question whether any amount payable before costs for services repair maintenance insurance or management are incurred is reasonable whether such costs were reasonably incurred or whether services or works for which costs were incurred are of a reasonable standard then and in every such case the dispute or difference shall be referred in accordance with the provisions of the Arbitration Act 1996 or any statutory modification or re-enactment thereof for the time being in force to the determination of a single arbitrator to be agreed upon by the parties or failing agreement to a person nominated by the President for the time being of the Royal Institution of Chartered Surveyors

If there are any disagreements or differences between you and us in respect of the quality or cost of services, repairs, maintainence, insurance or management provided under this agreement, then that dispute shall be considered by an independent arbitrator agreed by us and you. If we cannot agree on who should be appointed as the independent arbitrator then the President of the Royal Institute of Chartered Surveyors will select one for us.

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Certificate

12. IT IS HEREBY CERTIFIED that the transaction

as to Value

hereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value or the aggregate amount or value of the consideration (other than rent) exceeds ONE HUNDRED AND TWENTY FIVE THOUSAND POUNDS (£125,000.00)

We are required by law to confirm that this agreement is not part of any other agreement and does not exceed £125,000.00 in value.

12. IT IS HEREBY CERTIFIED that there is no Agreement for Lease to which this Lease gives effect There is no previous agreement between you and us which compels us to grant you this lease.

IN WITNESS whereof the Council has executed and the Lessee has signed this instrument as a Deed the day and year first above written To prove this agreement between you and us, you have signed it and we have affixed our seal.

THE FIRST SCHEDULE above referred to The Estate

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THE Council's Estate known as

Estate

This refers to the name of the housing estate (if any) in which your flat/maisonette is located.

THE SECOND SCHEDULE above referred to The Building ALL THAT piece or parcel of land TOGETHER with the block of [pair of] flats erected thereon known as situate in the City of Newcastle upon Tyne shown coloured blue on the plan annexed hereto (“the plan”) The ‘building’ refers to the block (or pair) of flats that your flat/maisonette is part of. This building is coloured blue on the plan attached to this agreement.

THE THIRD SCHEDULE above referred to The Reserved Property First ALL THOSE the areas forecourts courtyards fences walls and the halls staircases lifts (if any) landings steps passages and other parts of the Building which are used in common by the lessee or lessees or occupiers of any of the other flat or flats comprised in the Building We still own the items listed above which includes forecourts, courtyards, fences, walls and the halls, staircases, lifts, landings, steps, passages and other communal areas.

Secondly ALL THOSE the external main structural parts of the Building including the roofs chimney stacks and pots roof supports foundations and external walls and parts thereof (but not the glass in the windows of the flats nor the interior faces of such external walls as bound the flats) and also the walls dividing the flats from the common halls staircases (but excluding the interior faces of such walls and any staircases situated wholly within the demised premises) landing steps and passages in the Building and all the cisterns tanks central heating apparatus (if any) sewers drains gutters

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pipes wires cables ducts and conduits not used solely for the purpose of the demised premises and the joists or beams to which are attached any ceilings or floors also the structural parts or railings of any balconies We still own the external main structural parts of the block, which includes the roofs, chimney stack/pots, roof supports, foundations and external walls.

We still own the walls which divide your flat/maisonette from communal Thirdly any flat or flats comprised in the Building for the ses except for the interior faces of such walls. The interior halls and staircatime being not sold or let on long lease on similar faces of such walls form part of the property leased to you and you are terms to these presents other than price responsible for maintaining these.

We still own any other flats or maisonettes in the block that we have not sold or not leased. ral heating We still own anyFourthly landing,all steother ps, pparts assagof esthe , cisEstate terns, tother anks,than centthe apparatus, sewer, drains, gutters, pipes, wires, cables, ducts and conduits Building which do not wholly serve your flat/maisonette (ie. those which serve the common parts or more than one flat). Any landings, steps, passages, cisterns, tanks, central heating apparatus etc which serves you flat/maisonette only, forms part of the property leased to you and you are responsible for maintaining these.

We still own all other parts of the Estate on which your flat/maisonette is situated.

Fifthly any attic loft space and/or roof void situate within the Building We still own any attic, loft space and/or roof void in the block.

THE FOURTH SCHEDULE above referred to The Demised Premises ALL THAT Flat or Maisonette known as Number on the floor of the Building TOGETHER with the adjacent plot or plots of garden or other land (if any) AND TOGETHER with the garage (if any) and outbuildings (if any) erected thereon or some part thereof which said Flat garden or other land garage

26

and outbuildings are more particularly shown on the plan annexed hereto and are thereon verged red [ ] You are being sold a long lease of the flat/maisonette referred to above and any garden or outbuildings that are being sold as part of it. The property being leased to you is edged in red on the plan attached to this agreement.

AND TOGETHER ALSO with a right of way over the driveway (if any) shown coloured brown on the said plan for access purposes to any said garage or outbuildings You have a right to cross over any driveway coloured brown on the attached plan.

AND TOGETHER ALSO with:(a)

All landlords fixtures and fittings now or from time to time during the Term thereon or therein

All fixtures and fittings in the flat/maisonette (eg. baths/sinks/ kitchen/cupboards) are included the property leased to you.

(b)

The floors ceilings walls doors and windows thereof so far as not herein excepted Provided that in the case of floors ceilings or walls forming the boundary with another flat and which are not separated by a joist or beam only the inner half of the floor ceiling or wall is included in the demise (divided in the case of the floors and ceilings medially and horizontally through the main structure and in the case of walls medially and vertically through the main structure) The items listed above are included in the property leased to you. This includes any walls, ceilings and floors which are inside your flat/maisonette, but does not the structural joists underneath the floors. It also includes the inner half of any walls, ceilings and floors which form the boundary between your flat/maisonette and adjoining flats/maisonettes. It includes any doors and doorframes inside your flat/maisonette (but does not include your entrance door) and any windows which are only for your use. It also includes any doors, windows and inner walls of any outbuildings that have been leased to you as part of the flat/maisonette.

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(c)

All cisterns tanks drains pipes wires ducts and conduits used solely for the purposes of the demised premises whether or not within the boundaries of the demised premises

All cisterns, tanks, drains, pipes, wires, ducts and conduits that serve only your flat/maisonette are also included in the property leased to you.

THE FIFTH SCHEDULE above referred to Rights and easements granted to the Lessee 1.

The right in common with the Council and the lessee or lessees and occupiers of any other flat or flats comprised in the Building and all others having the like right for the Lessee and for all other persons coming to or leaving the demised premises to use for the purpose only of access to and egress from the demised premises all such stairs passageways and other parts of the Building as afford access thereto and egress therefrom (including all or any lifts) and all driveways and footpaths now or within the perpetuity period serving the Building and the estate roads and footpaths forming part of the Estate You, along with us and any other leaseholders/tenants, have the right to use the communal passageways, stairways, lifts, footpaths, roads and driveways within the block or the Estate for the purpose of access to and from your flat/maisonette.

2.

The right of free passage and running of air water oil soil gas and electricity television and telephone signals or impulses through the ventilators sewers drains pipes wires cables and conduits and other services and conducting media which are now or may within the perpetuity period be in or under or upon any part of the Estate or the Building in so far as the same are connected to and serving the demised premises together with all easements rights and privileges for repairing maintaining and reinstating the same You are entitled to use any ventilators, sewers, drains, pipes, wires, cables, conduits and other services which are connected to your flat/maisonette for the purpose of receiving air, water, oil, soil, gas, electricity, TV and telephone signals. You also have a right to carry out repairs and maintenance to any of these.

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3.

The benefit of covenants and restrictions similar to those herein contained imposed by the leases of other flats comprised in the Building upon the lessees thereof so far as such covenants and restrictions are intended to benefit the demised premises or the Lessee and so far as the benefit thereof can in law accrue to the demised premises or the Lessee For your benefit, similar rules and restrictions are imposed upon other leaseholders within the block.

4.

The right of support and shelter so far as may be necessary for the demised premises as the same is at present enjoyed from the adjoining flat or flats and any part of the Building which may be respectively below or beside or above the flat and the foundations thereof and the right to the protection afforded to the demised premises by the roof of the Building You are entitled to take steps to ensure that the structure of the block continues to support and protect your flat/maisonette.

5.

The right at all reasonable times with or without workmen and others as often as need or occasion shall require to enter any adjoining or adjacent flat or any other part of the Reserved Property as necessary and remain therein for such reasonable time as is necessary for the purpose of complying with any of the covenants on the part of the Lessee herein contained which cannot otherwise be complied with the Lessee making good forthwith any damage caused thereby such right not to be exercised unless reasonable notice has previously been given to the adjoining owner (or to the Council if the flat to be entered forms part of the Reserved Property) except in case of emergency You or anyone working on your behalf have the right to access adjacent flats or other parts of the block to carry out works where this is necessary to meet your obligations under this lease. If you require access to another flat you must (except in cases of emergency) give the relevant owner/occupier advance notice of your requirements. If you require access to parts of the block/Estate which are still owned by us, you must (except in cases of emergency) give us advance notice of your requirements.

Access can only be required at reasonable times and you must cause as little nuisance as possible. You will be responsible for putting right any damage caused by you or your workmen as soon as possible.

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6.

The right to discharge household refuse into any refuse chute serving the Building between the hours of Eight ante meridian and Ten post meridian only If your block has a rubbish chute, you may put household waste into it between the hours of 8.00am and 10.00pm.

7.

The right for the Lessee and all other persons authorised by the Lessee (in common as aforesaid) to use such gardens (if any) coloured green on the said plan and other communal amenity areas (if any) on the Estate as may from time to time subsist subject to compliance with all regulations laid down by the Council in respect thereof You may use any communal gardens on the Estate(these will be coloured green on the map) and any communal amenity areas on the Estate provided that you comply with any rules and regulations laid down by us in conenction with their use. You may also allow your visitors to use these areas.

8.

A right of way for the Lessee and all persons authorised by the Lessee to pass and repass on foot only at all reasonable times over the piece of land (if any) shown coloured yellow on the said plan for all purposes connected with the use and enjoyment of the demised premises You may cross on foot and at reasonable times any areas coloured yellow on the plan attached to this agreement. You may also allow your visitors to cross these area(s).

9.

The right (in common as aforesaid) subject to payment of all charges therefor and compliance with all regulations laid down by the Council in respect thereof to use any residents club room laundry rooms or other communal facilities which may be from time to time subsisting in the Building or on the Estate You have the right to use any residents club room, laundry room or other communal facilities within the block or the Estate provided you comply with any rules and regulations (which may include payment of charges)laid down by us in conenction with its use.

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THE SIXTH SCHEDULE above referred to Exceptions and Reservations 1.

The right of free passage and running of air water soil gas oil and electricity and television and telephone signals or impulses through those ventilators sewers drains pipes wires cables and conduits and other services and conducting media which now are or may within the perpetuity period be in under or upon the demised premises together with all easements rights and privileges proper for repairing maintaining and reinstating the same We have a right to pass air, water, oil, soil, gas, electricity, TV and telephone signals through any ventilators, sewers, drains, pipes, wires, cables, conduits and other services which are located in, under or upon your flat/maisonette.

2.

The right of support and shelter and all such other rights easements and quasi-easements as are now enjoyed by the flats or the flat and any other part of the Building not included in this demise We are entitled to take steps to ensure that other flats and other parts of the building continue to receive structural support and protection from your flat/maisonette. your flat/ 3.

The right for the Council its servants or agents and the owners or occupiers of the other flats their servants or agents at all reasonable times with or without workmen and others as often as need or occasion shall require to have access to and enter the demised premises and remain therein for such reasonable time as is necessary for the purpose of carrying out any works improvements or repairs to any part of the Building or the Estate or to any cisterns tanks sewers drains gutters pipes wires cables ducts and conduits or other things serving any part of the Building or the Estate which cannot otherwise be executed and of complying with their respective obligations either hereunder or under any covenants relating to any other flat the person exercising such rights making good forthwith any damage caused by such entry such right not to be so exercised unless reasonable notice has previously been given to the Lessee except in case of emergency We, our workmen and leaseholders of other flats are entitled to access your flat/maisonette where this is necessary to carry out improvements, repairs or to meet our/their obligations under this/their lease agreements. If access is required to your flat/maisonette, the relevant party must except in cases of emergency) give you advance notice of their requirements. Access can only be required at reasonable times and the responsible party must repair any damage caused

31

4.

The right for the Council its servants or agents and the lessees of other flats their servants or agents at all reasonable times as often as need or occasions shall require to have access to and to enter the demised premises for the purpose of fixing and maintaining scaffolding and any other apparatus as may be necessary for the purpose of carrying out any works to the Building the person exercising such right making good forthwith any damage caused thereby such right not to be exercised unless reasonable notice has previously been given to the Lessee except in case of emergency We, our workmen and leaseholders of other flats are entitled to access your flat/maisonette for the purpose of fixing or maintaining scaffolding and other apparatus required in connection with carrying out works to the block.

If access is required to your flat the relevant party must (except in cases of emergency) give you advance notice of their requirements. Access can only be required at reasonable times and the responsible party must repair any damage caused.

5.

All such rights of way water and light drainage air and other rights and easements and quasi-easements of any kind whatsoever over the demised premises as now belong to or are enjoyed or intended to be enjoyed by the Council or any statutory undertakers their lessees or tenants in respect of any adjoining or adjacent premises This agreement preserves any rights (including rights of way, water, light, air and drainage) that we, other leaseholders and/or other occupiers had over your flat/maisnette prior to this agreement.

6.

The full and free right for the Council and their successors in title and licensees including statutory undertakers and telecommunications operators and its successors in title and such other persons as the Council may from time to time so authorise in relation to all wires cables poles brackets fixtures fittings repeater kiosks and other similar equipment in on over along to and/or against the demised premises for the diffusion of messages broadcast from any authorised broadcasting station to place erect fit attach fix use renew inspect repair maintain or remove such wires cables poles brackets fixtures fittings repeater kiosks

32

and other similar equipment together with the right of entry on the demised premises for the purpose of exercising such rights (such persons as aforesaid exercising the said rights making good at their own expense and as soon as reasonably possible all damage occasioned thereby) and it is hereby declared that the Lessee shall be entitled to the benefit of such similar rights as are or may be reserved under any Conveyances or Leases by the Council of other properties adjoining or neighbouring the demised premises in so far as such rights may be requisite for the reception of the aforesaid messages broadcast programmes and entertainment on or at the demised premises We, our workmen, statutory undertakers and telecommications operators have the right to fit, attach, renew, inspect, repair, maintain or remove all wires, cables, poles, brackets and other fittings over, along or against your flat/maisonette for purposes of providing reception for telecommunications, tv, radio and other entertainment. We have the right to enter your flat/maisonette for this purpose. Any damage will be repaired by those responsible. You have a similar right under this agreement.

7.

The right for the Council and its lessees and tenants at any time hereafter to build or rebuild or alter or permit or suffer to be built or rebuilt or altered any buildings or erections upon the Estate including the Building or upon any adjoining property now or hereafter belonging to the Council according to such plans and to such height extent or otherwise and in such manner as the Council may think fit and to alter the layout of the roads and footways within the boundaries of the Estate without obtaining any consent or making any compensation to the Lessee provided that such works do not interfere with any rights to the access of light and air now enjoyed by the demised premises We and persons authorised by us (which may include other tenants and leaseholders), have the right to carry out building works, alterations or build new erections to or upon the block, the Estate or any adjoining property owned by the Coucnil. We can also alter roads and footpaths within the Estate. We can do this without seeking your consent. Provided such works do not interefer with your access rights or your rights to air/light, we do not have to pay you any compensation in respect of this.

8.

The right for the Council from time to time to make add to or amend regulations for the preservation of the amenities of the Building or the Estate or any

33

part thereof for the general benefit of the occupiers of the buildings thereon We can make or change the rules regulating the use of communal areas and communal amenities within the block and/or Estate.

9.

The right for the Council its servants or agents and the lessee lessees or occupiers of the other flat or flats comprised in the Building and all persons authorised by them to pass and repass on foot only at all reasonable times over that part of the demised premises (if any) shown hatched green on the said plan We, our tenants, other leaseholders and persons authorised by us/them are entitled to cross on foot over the area marked green on the attached plan (if any).

10. The exceptions and reservations (if any) referred to in the Eleventh Schedule hereto We also retain the rights (if any) listed on page 52 of this agreement.

THE SEVENTH SCHEDULE above referred to Lessee’s Covenants 1.

To pay the said yearly rents herein reserved and payable at the times and in the manner at and in which the same are herein reserved and made payable without any deduction You agree to pay your annual rent and management charges in full and on time.

2.

To pay all existing and future rates taxes assessments charges impositions and outgoings whatsoever now or hereafter assessed charged or imposed upon the demised premises or upon the owner or occupier in respect thereof and in the event of any such being assessed charged or imposed in respect of the Building to pay the due proportion

34

thereof attributable to the demised premises except only (in all the above cases) such as the owner is by law bound to pay notwithstanding any contract to the contrary You agree to pay all rates, taxes and other outgoings (eg. council tax, water charges) charged to you and your flat/masionette. You must also pay a proportion of any rates, taxes and other outgoings that are charged to the block as a whole. The proportion you will be required to pay is stated on page 52 of this agreement.

3.

To pay for all gas and electricity or other illuminant or source of power consumed on the demised premises and all charges for the hire of meters in respect thereof and all hot water and central heating charges (if any) including all charges for fuel and any government tax duty or levy thereon and for plant management ash disposal the filling of hoppers or tanks and any other charges and costs incidental to the running maintenance and management of the heating plant and equipment serving the demised premises only You agree to pay for all gas, electricity, heating, lighting or other fuel consumed in your flat/maisonnette. You also agree to pay for costs incidental to the running, maintaance and anagement of related plant or equipment serving your flat/maisonette.

4.

To the satisfaction of the Council to keep in good and substantial repair and condition and properly cleansed throughout the Term the demised premises and all fixtures and fittings and the glass in the windows therein and all additions thereto and all (if any) boundary walls and fences of the demised premises marked 'T' on the said plan and in conjunction with the Council or their successors in title to maintain the fence and/or wall (if any) at the rear boundary of the demised premises marked with a 'T' on both sides of the rear boundary delineated on the said plan and whenever necessary to rebuild and reinstate and replace the demised premises and every part thereof including all doors and door frames and the glass in the windows floors and ceilings boundary walls and fences and all cisterns tanks sewers drains gutters pipes wires cables ducts and any other things installed for the purpose of supplying hot water (if any) central heating (if any) gas electricity or other illuminant or source of power or for the purpose of draining away water and soil and for allowing the escape of steam or deleterious matter from the demised premises in so far as

35

pipes wires ducts or other things are solely installed or used only for the purposes of the demised premises and including all walls windows boards and skirtings save that in the case of all exterior walls and all walls dividing the demised premises from the common halls staircases passages and landings in the Building the obligations of the Lessee under this clause shall be limited to keeping the interior plaster work and decoration of such walls windows boards and skirtings in such repair and condition as aforesaid You must keep your flat/maisonette, any additions and all fixtures and fittings clean and in good repair. You must replace or nenew items whenever necessary. This i5. ncludTo es (paint but nthe ot lim ited toof ) athe ny w indow pa nes, doowith rs interior demised premises (except entrancetwo doocoats rs), cisatteleast rns, ta s , squality ewers, paint drainsand , pipwell es, and wires that ofnkbest y your and flat/m a i s o n e t t e a n d i n t e r i o r p l a are installed solesufficiently ly for use bpaper plaster the interior of the sterwork, skirting and decodemised ration. premises and all additions and improvements thereto as are usually or ought to be painted papered You must also reand pair plastered and maintand ain agenerally ny boundto arydecorate walls or and fences which are marked on one sredecorate ide by a ‘T’ the on tdemised he plan apremises ttached tointhevery is agre ement. You seventh must help us maiyear ntainofanthe y reterm ar boand undin ry the walllast /fencyear e whor ichsooner is marked on both side with a ‘T’ ondetermination the plan attach to Term this agreement. ofed the You must decorate (ie. paint, paper, plaster) the inside of your flat/maisonette every seven years and in the last year of your lease. When painting, you must use at least two coats of best quality paint.

6.

To permit the Council with or without workmen and all other persons authorised by it at reasonable times and upon reasonable notice (except in emergency) during the Term to enter upon and view and examine the condition of the demised premises and prepare a schedule of all landlord's fixtures and fittings therein and for any other purpose and of all defects and wants of repair on any such view found the Council may thereupon serve the Lessee with notice in writing specifying any repair necessary to be done and for which the Lessee is liable under the covenants in that behalf herein contained and requiring the Lessee forthwith to execute the same and if the Lessee shall not within two months after service of such notice or sooner if requisite proceed diligently with the execution of such repairs to permit the Council and all persons authorised by it to enter upon the demised premises with any requisite appliances and execute such repairs and the cost thereof shall be paid to the Council by the Lessee and be forthwith recoverable by action as if it were rent You must allow us or our workmen access to inspect the condition of your flat/maisonette or any other purpose. We must give you advance notice of our need for access (except in cases of emergency). Following the inspection, we may give you a written notice requesting that you carry out specific repairs. If you do not carry these out within two months of recieving the notice, we and/or our workmen will be entitled to enter your

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7.

Upon receipt of reasonable notice (except in case of emergency) to permit the respective lessee or lessees of the other flat or flats comprised in the Building to have access to and enter the demised premises as often as it may be reasonably necessary for them to do so in fulfilment of their respective obligations under any covenants relating to any other flat and similar to those herein contained You must allow other leaseholders access to your flat/maisonette where this is necessary to enable them to fufil with their own lease obligations. If they require access they must (except in cases of emergency) give you advance notice of their requirements.

8.

Within the time limited by law or by notice requiring the same to be done or if no such time is limited within a reasonable time to carry out all sanitary works and all other works whatsoever which a public authority (including the Council or any other competent authority) may lawfully require to be carried out on or in connection with the demised premises (whether by the Landlord tenant owner or occupier) all such works to be done to the satisfaction of the Council or its agents in all respects to pay or cause to be paid all fees lawfully payable to any surveyor or other officer employed by the public authority and all other fees and payments property claimed by any such authority and also the proper and usual fees and charges of the Council or its agents for work done by the Council or its agents in preparing or approving plans or in supervising the execution of any of the works or otherwise in connection with the demised premises or as may thereafter be required hereunder You must carry out all sanitary works and any other works required by any public authority. You must do this within the time required by law or stated within the notice given to you. In absence of a specific time limit, you must carry out the works within a reasonable period of time. All works must be carried out to our satisfaction and you must agree to pay the cost of all work done by us or our agents in preparing/approving plans or in supervising/inspecting the works needed. You also agree to pay any fees that are lawfully charged by the relevant public authority.

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9.

Within one calendar month after every assignment transfer underletting vesting deed assent charge mortgage or devolution of the demised premises or on the grant of Probate of the Lessee's will or on the grant of Letters of Administration to his Estate to produce the same to the Council's Head of Legal Services for registration and to pay to the Council's Head of Legal Services her reasonable fee in respect of each such document or instrument so produced Within one calendar month of your flat/maisonette being sold, transferred, sub-let, inherited, mortgaged or charged you (and/or your sucessor) must send a copy of the relevant legal document (eg. deed of transfer, subtenancy agreement, grant of Probate, Letters of Administrateion, mortgage) to Head of Legal Services, Newcastle City Council, Civic Centre, Newcastle upon Tyne, NE99 2BN. We will register the document and can charge you a fee for this.

10. In the event of the Council contemplating selling or granting a lease of the reversion expectant hereon to permit on reasonable notice being given any prospective purchaser or lessee or their respective agents to enter upon the demised premises to view the same If we are thinking of selling or leasing the freehold of your flat/ maisonette, you must allow us and/or any prospective pruchaser to enter and view your flat/maisonette. You will be given advance notice of the viewing.

11. Upon the receipt of any notice order requisition or other thing from a competent authority affecting or likely to affect the demised premises or any part thereof or the landlord's fixtures therein and thereon whether the same shall be served directly on the Lessee or the original or a copy thereof be received from any underlessee sub-tenant or other person whomsoever the Lessee will so far as such notice requisition direction or other thing or the Act Regulation Order or other instrument under and by virtue of which it is issued or the provisions of this Deed require the Lessee so to do comply therewith at its own expense and will forthwith deliver to the Council two copies of any such notice order requisition direction or other thing which may be capable of adversely affecting the

38

Council's interest herein or reversionary interests in the demised premises If you or any sub-tenant receives a notice, order or request from any authority that is likely to affect any part of the flat/maisonette or its fixtures, you must send us 2 copies of it as soon as possible.

12. (i) Not to do or permit or suffer to be done any act matter or thing in respect of the demised premises or any part thereof which may contravene any provision of the Act and to keep the Council indemnified against all costs claims demands and liabilities in respect thereof You must comply with the the law. If you fail to do so you must reimburse us for any damage or loss that may be sustained as a result of your failure.

(ii) Within seven days after the receipt of the same to give full particulars to the Council of any notice or proposal for a notice or order or proposal for an order given issued or made to or on the Lessee by the planning authority under the Act and if so required by the Council to produce such notice or proposal to it and without delay to take all reasonable and necessary steps to comply with any such notice or proposal and if the Council is not the local planning authority at the request of the Council but at the cost of the Lessee to make or join with the Council or any other person the Council shall direct in making such objection or representation against or in respect of any such notice order or proposal as the Council shall deem expedient You must inform us if your receive any notice, order or proposal from a planning authority. You must do so within 7 days of recievng it and if we ask you to send us a copy of the document you must do so without further delay. If the document requires you to do anything, you must take reasonable steps to comply with it. If it is was not our planning authority that gave you the notice/order/proposal, we will be entitled to object to the notice and charge the costs of doing so to you.

13. Not to permit any owner or occupier of any adjoining or adjacent premises to acquire any right of light over the demised premises or the Building but forthwith to inform the Council of any act or thing coming to the knowledge of the Lessee which might result in the acquisition of such right or easement over

39

the demised premises or the Building and to do all acts and things which may be necessary or expedient to prevent the acquisition of any such right or easement You must not allow anyone in adjoining or nearby premises to gain a right of light over your flat/maisonette or the block. You must inform us immediately if you become aware of anything that may lead to someone acquiring such a right. You must do all you can to stop this from

14. Not to suffer any encroachment to be made on the demised premises and if any such shall be made to permit the Council or all others for the time being concerned to take any appropriate action and not to permit any wilful voluntary or permissive waste or spoil to be done or suffered upon the demised premises You are not to allow any persons without a right to come into your flat/maisonette (including any gardens outbuildings that may be leased to you) or allow them to deposit anything (including waste) upon it. If this does happen, you must allow us to take action to remedy the situation.

15. To pay the Council all expenses (including solicitor's costs and surveyor's fees) (i) incurred by the Council for the purpose of or incidental to the preparation and service of a notice under Section 146 of the Law of Property Act 1925 notwithstanding that forfeiture is avoided otherwise than by relief granted by the Court and You agree to pay us all expenses (including solicitor’s costs and surveyor’s fees) that may be incurred by us in preparing and giving to you notice that the lease is to be forfeited, even if forfeiture is avoided.

(ii) incurred by the Council incidental to the preparation and service of a Schedule of Dilapidations at the end or sooner determination of the Term in respect of the demised premises You agree to pa16. y us aNot ll extopepermit nses (or incsuffer ludingto sobe licitdone or’s con ostthe s andemised d surveyor’s fees) that may bpremises e incurredorbyinuthe s inlocality preparithereof ng and gany ivinact g toor yothing u a Schedule of Dilapidations which (ie. listmay of dibe sreor pabecome irs), wheathnuisance er this be or doinconvenience ne at or before the end of your leasto e. the Council or any other lessee or occupier of any of the other flat or flats comprised in the Building or to the owner or occupier of any adjoining or neighbouring property You must not to allow anything to be done in or near to your flat/maisonette that may be or become a nuisance to any occupiers of the other flats/maisonettes in the block or in the neighbouring property.

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17.

(i)

Not to use the demised premises other than as a single private dwellinghouse for the occupation of one family (as defined by Section 113 of the 1985 Act) only

You must not use the flat/maisonette for anything but a single private house and it is to be occupied by only one family at any one time.

(ii)

Not to subdivide the demised premises

You must not divide the flat/maisonette up so as to create more than one home/property.

Subject nevertheless to the number of persons occupying the demised premises not exceeding the permitted number as specified in Part X of the 1985 Act or as may be specified in any re-enactment of the same You must not overcrowd your flat/maisonette.

18. Not to use the demised premises or permit or suffer the same to be used for any purpose of an illegal immoral improper unpleasant noisy or noxious nature or for the sale or commercial manufacture of intoxicating liquors You must not use or allow your flat/maisonette to be used for any purpose that is illegal, immoral, improper, unpleasant, noisy or of a noxious nature. Nor must you use it for the sale or commercial

19. Not at any time hereafter without the prior written consent of the Council's Head of Property Services or such other person as shall be appointed to act in his stead to make or permit to be made any alteration in the construction height elevation or architectural appearance of the demised premises or any part thereof or to alter or cut any of the principal walls or timbers thereof or erect or build any additional or any substituted building whatsoever upon the demised premises or any part thereof or enclose the portico thereof (if any) or to erect any fences or obstruction

41

poles wires aerials or other erection upon the demised premises or in any way alter or add to the central heating or hot water system (where applicable) in the demised premises You must not do any of the following to your flat/maisonette without first obtaining permission from our Head of Property Services: - alter its outer appearance or height; - cut or alter any principle walls or timbers; - build any erections or addition to the existing building; - install any fences, obstructions, poles, wires, aerials or other erection; - alter or add to the central heating or hot water system.

20. Not to permit any water or liquid to soak through the floors of the demised premises or suffer dirt rubbish rags or refuse of any corrosive or harmful substance to be thrown into the sinks baths lavatories cisterns or waste or soil pipes in or serving the demised premises and in the event of such happening without prejudice to the Council's other rights under this Lease immediately at the expense of the Lessee to rectify and make good all damage and injury thereby caused You must not allow any water or liquid to soak through your floors. Nor must you allow dirt, rubbish, moss or any corrosive or harmful substance to be thrown into the sinks, baths, lavoraties, cistems or soil pipes that are in or serve your flat/masionette. If this does happen you must immediately repair all damage caused at your own expense.

21. At the expiration or sooner determination of the Term peaceably and quietly to surrender and yield up unto the Council or as it may direct the demised premises with vacant possession with the appurtenances and all the landlord's fixtures and fittings therein in good and substantial repair and condition and in all ways in accordance with the Lessee's covenants herein contained You must vacate your flat/maisonette and any gardens/outbuildings at the end of the lease (or earlier if arranged). You must take all your possessions wit22. h youInburespect t must lof eathe ve ainsurance ll of our fixeffected tures in pby lacthe e and in good tion. repair and condiCouncil by virtue of paragraph 2 of the Ninth Schedule hereto the Lessee shall:(a)

Not do or permit or suffer to be done any act or thing whereby the Council's policy or policies of insurance effective in respect of the Building or

42

any part thereof may be or become void or voidable or whereby the rate of premium may be increased or where any valid claim may be refused and in particular not to leave the demised premises continuously unoccupied for more than 30 days You must not allow anything to be done which will cause our insurance policies for the block to become void, cause our insurance premiums to increase or cause a good insurance claim to be refused. In particular, you must not leave your flat/maisonette empty for a period of more than 30 days (b)

To inform the Council of any change in circumstances from that contained in the proposal form completed by the Lessee at the commencement of this Lease

You must tell us of any change in your circumstances from those listed in your proposal form. (c) To pay to the Council any expenses incurred by the Council in or about any renewal of such policy or policies rendered necessary by:(i)

A breach by the Lessee of this covenant

(ii)

A change in circumstances of the Lessee increasing the risk on the policy

Together with the full expenses incurred by the Council in respect of any damage to the building arising out of an insurable risk at the demised premises whereby a breach of the insurance conditions by the Lessee shall have negated any claim in respect of such damage AND all such costs and expenses shall be repaid by the Lessee to the Council and be recoverable by the Council as if they were rent in arrears You must pay us for any expenses incurred when renewing the insurance policies for the block where this was caused by you breaking the the terms of this lease or by a change in your circumstnaces which increased the risk on the policy.

Where an insurance claim has been rejected because you breached an insurance condition, you must compensate us for any damage caused and reimburse all our costs and expenses. Such sums can be recovered from you as if it were rent in arrears.

THE EIGHTH SCHEDULE above referred to

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Regulations to be observed by the Lessee

1.

The Lessee shall not

(a) Affix or paint on any part of the demised premises any plate or notice or exhibit in any window or upon any external part of the demised premises or of the Building or on any part of the common entrance hall staircases landings or passages any trade professional or business notice or advertisements whatsoever You must not paint or display any sort of notice or any form of advertising outside the flat/maisonette, in your windows or in the communal areas of the block. (b) Hold or permit any sale or auction on the demised premises You must not allow a sale or auction to take place at your flat/maisonette.

(c) Keep a dog cat or other animal in the demised premises to which the only means of access is via a communal entrance. In case of extreme hardship for example but without prejudice to the generality of the foregoing a blind person with a guide dog the consent of the Council should be sought and will not be unreasonably withheld You must not keep a dog, cat or other animal in your flat/maisonette or garden if the only entrance to your flat/maisonette is shared with other occupiers in the block.

In cases of extreme hardship (for example if you need a guide dog) we may be willing to agree to you keeping an animal but you will need to seek our permission. We will not unreasonably withhold our consent. (d) Allow or permit window boxes or plants to be placed on any window sills or balconies without the prior written approval of the Council You must not place window boxes or plants on any window sill or balcony unless you have first obtained written permission from us to do so.

(e) Throw refuse or permit to be thrown from the windows or doors of the demised premises or

44

expose washing clothes mats or rugs or hang beat or shake washing clothes mats rugs on or from the windows landings balconies stairs or roof of the demised premises You must not throw rubbish from the windows or doors of your flat/maisonette. Nor must you place or shake washing, clothes, mats or rugs on or from any windows, landings, balconies, stairs or roof.

(f) Erect or permit to be erected any external wireless or television aerial telephone or other apparatus or make any attachment to the demised premises in connection therewith without the prior written approval of the Council or interfere with or cause or permit interference with the television aerial system (if any) at the demised premises You must not attach an external aerial, telephone or other apparatus to your flat/maisonetter without first obtaining written permission from us. Nor must you interefere with any television aerial system that may already be installed at the property. (g) Play or permit the use of any piano gramophone or radio or television apparatus tape recorder or other musical or mechanical instrument or device of any kind or sing or permit any singing in the demised premises in such manner so as at any time of day or night to cause annoyance to the occupiers of neighbouring flats or so as to be audible outside the demised premises between the hours of Eleven post meridian and Nine ante meridian You must not play or allow others to play any musical instrument, musical device, television or sing in your flat/maisonette in such a manner that it would cause annoyance to occupiers of neighbouring flats at any time of day or night. In particular, you must never allow music/tv or singing to be played so as to be audible outside you flat/maisonette between 11pm and 9am. (h) Park or permit to be parked upon any drive accessway or forecourt of the Building or within the Estate any vehicle except a private motor vehicle in a parking space designated by the Council You may park a private motor vehicle in any designated parking space outside your block or on the Estate. You may not park a motor vehicle on any drive, accessway or forecourt outside your block or on any other part of the Estate if it has not been designated by the Council as a parking space.

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(i) Use the garden (if any) included in this demise for any purpose other than as garden ground only by the Lessee and his family and shall not place or permit to be placed or parked upon the same any cars caravans boats trailers or vehicles of any description If this lease includes a garden, you must not use it for any purpose other than a garden. It may only be used by you and your family. You must not park or allow others to park, a car, caravan, boat, trailer or other vehicle on the garden. (j) Without the written consent of the Council cut down or remove any trees or shrubs at any time growing on the demised premises or any part thereof except such as may die or become diseased and to replace all such as may be cut down or removed or shall die You must not cut down or remove any trees or shrubs growing on your property unless you have written permission from us to do so. Where trees or shrubs have died or become diseased, you may remove these without our permission but you must replace them. (k) Use any refuse chutes situate within the Building for the disposal of any bulky items which may be likely to cause a blockage in the said chutes You must not dispose of bulky items using the refuse chutes (if any)within your block if it is likely to cause a blockage. (l) Use any refuse chutes for the disposal of wet refuse without first placing the same in plastic or similar waterproof bags or wrappings and satisfactorily securing the same so as to avoid spillage in the said chutes If you are using refuse chutes to dispose of wet refuse, you must first place it into a waterproof bag/wrapper and make sure the bag/wrapper is secure so as to avoid spillage. (m) Use any refuse chutes for the disposal of soiled medical dressings You must not use refuse chutes to dispose of soiled medical dressings.

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2.

The Lessee shall

(a) Provide (if required) and maintain a dustbin for use in connection with the demised premises You must provide and maintain a dustbin for use at your flat/maisonette.

(b) Have the chimneys (if any) of the demised premises swept at least twice a year and at such times as the Council may require If your flat/maisonette has a chimney, you must arrange for this to be swept at least twice a year. (c) Comply in all respects with the provisions of the Clean Air Act 1956 so far as it affects the demised premises If your flat/maisonette is in a smokeless zone, you must use smokeless fuel. (d) Cultivate the garden (if any) the use of which is exclusive to the demised premises and to maintain the same in a neat and tidy condition and to keep all lawns grass verges and privet or other hedges cut and trimmed to the reasonable satisfaction of the Council and to keep the garden approaches and open areas free from weeds and rubbish If your flat/maisonette has its own garden or other open area you must keep it neat, tidy, trimmed and free from weeds and rubbish. (e) Be responsible for all damage caused by him or his family or visitors to the demised premises and for any breach of any of these conditions by his family or visitors You will be responisble for any damage or breach of lease that may be caused by you, your family and/or your visitors. (f) Keep all passages and staircases in the Building clear of obstruction of any kind You must keep all passages and stairways in the block clear of obstruction.

47

(g) In making use of a lift or hoist where such is provided observe the regulations made by the Council from time to time governing its use If you block has a lift or hoist, you must comply with any regulations issued by us in connection with its use.

3.

Any disputes between the Lessee and the lessee lessees or occupiers of the other flat or flats for the time being forming part of the Reserved Property in respect of the use of the demised premises shall be settled by reference to the Council We will decide any disagreements that may arise between you and other leaseholders/tenants in the block.

4.

Written application shall be made to the Council for any permission required for any purpose under the foregoing conditions If you wish to seek our permission for something connected with this lease, then you must request this from us in writing.

THE NINTH SCHEDULE above referred to Council's covenants to be observed by the Council at the Lessee's expense We must perform the acts listed below but you will have to pay a contribution towards the costs of us doing these. The contribution you must pay is stated on page 52 of this agreement.

1.

To keep in good and substantial repair and condition (and whenever necessary rebuild and reinstate and renew and replace all worn or damaged parts) of:(i) The main structure of the Building including all foundations forming part of the Building all exterior and all party walls and structures and all walls dividing the flats comprised in the Building from the common halls staircases landings steps and passages and the walls bounding the same and all electrical and other fittings and windows (but excluding the internal plaster the windows and electrical and other fittings inside any individual flat for which the lessee thereof is

48

responsible under any provisions in his lease corresponding to paragraph 4 of the Seventh Schedule hereto) and all doors therein save such doors as give access to individual flats and including all roofs and chimneys and every part of the Building above the level of the top floor ceilings We must keep the outside and the structure of the block in good repair. We will also repair the roof, chimneys, walls between the flats/maisonettes and any walls which separate the flat/maisonette from the communal areas.

We will also repair any electrical and other fittings, windows and doors which are not inside any individual flat/maisonette as well as the entrance door(s) to your flat/maisonette. We will replace such items where necessary.

You are responsible for repairing internal plaster and any doors, windows, electrical and other fittings that are inside your flat/maisonette. (ii) All cisterns tanks boilers sewers drains gutters pipes wires cables ducts and conduits and any other thing installed in the Building for the purpose of supplying water hot water gas electricity and other usual services and for the purpose of draining away water and soil and for allowing the escape of steam and deleterious matter save only such cisterns tanks sewers drains gutters pipes wires cables ducts and conduits and other things as are solely installed or solely used for the purpose of any particular flat and for which the lessee thereof is responsible under any provisions in his Lease corresponding to paragraph 4 of the said Seventh Schedule We will keep in repair any cisterns, tanks, boilers, sewers, drains, gutters, pipes, wires, cables, ducts, conduits and other things installed which supply services to the whole block or which serve more than one flat/maisonette in the block. You are responsible for repairing such items where it serves your flat/maisonette only. (iii) Any wireless and television masts and aerials cables and wires erected on the Building or in or over the roof or roofs of the Building and available for use with the flats or some of them and including the demised premises comprised in the Building We will keep in repair any radio/tv masts, aerials, cables and wires that may be fixed to, in or over the roof of the block are that available for use by the flats/maisonettes in the block.

49

(iv) All such parts of the Reserved Property not hereinbefore mentioned and all fixtures and fittings therein and additions thereto We will also maintain any other parts of the block/Estate that have not already been mentioned above and which have not been sold or leased to someone else.

PROVIDED that nothing herein contained shall prejudice the right of the Council to recover from the Lessee or any other person the amount or value of any loss or damage suffered by or caused to the Council or the Building by the negligence or other wrongful act of the Lessee or any such other person We are entitled to recover compensation from you for any loss or damage suffered by us or to the building as a result of your negligence or wrongful act.

2.

To insure and keep insured the Building (including the demised premises) against loss or damage by fire and such other risks as are normally contained in a household comprehensive policy for the full rebuilding cost thereof including architects and surveyors fees and to any extent in excess of such amount and against such other risks as the Council may from time to time deem necessary or prudent such policy or policies to be effected and maintained with an Insurance Office of repute and in such agency as the Council shall choose and to pay the premiums on any such insurance upon the due date and in the event of damage by fire or other cause to lay out forthwith all moneys received from any such insurance in rebuilding and reinstating the Building and making good such damage PROVIDED ALWAYS that if at the expiration of three years from the date of such destruction or damage the Council shall have been unable through circumstances beyond its control to rebuild and reinstate as aforesaid the insurance moneys and all interest earned thereon shall be shared among the persons having any interest therein in such proportions as shall be just and equitable having regard to the nature of such interests and at the expiration of such said period of three years the Term shall cease and determine We will insure the block (including your flat/maisonette)against fire damage and other risks that are normally covered by a comprehensive household insurance policy. In the event of damage to the block, we will use any monies paid out under the policy to make good the damage.

However, if for reasons beyond or control, we have been unable to repair/reinstate the block within 3 years of the damage being caused, any related insurance monies shall be shared among persons having an interest therein.

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3.

To keep adequately lighted all such parts of the Reserved Property as are normally lighted or should be lighted and keep clean and tidy the said common halls staircases landings steps passages doors windows areas forecourts and courtyards We will light those parts of the communal areas in the block and on the Estate that should normally be lighted. We will also keep the communal areas (eg. shared halls, staircases, landings, steps, passages, doors, windows, areas, forecourts and courtards) clean and tidy.

4.

Upon the Council's repainting cycle for the Building to repaint and decorate in a workmanlike manner the exterior of the Building and all such parts of the said common halls staircases landings steps passages doors and windows of the Reserved Property as are usually so treated We will repaint and decorate the outside of the block and appropropriate parts of the communal areas in the block as part of our paint cycle.

5.

To manage the Building for the purpose of keeping the same in a condition similar to its present state and condition We will manage the block with a view to keeping it in similar state and condition to what it was at the start of this of this lease.

6.

To carry out all such other works (including improvements) to or in respect of the Building or on the Estate as are in the opinion of the Council necessary for its proper maintenance and management We will carry out whatever other works and improvemetns to the block and Estate we consider appropriate.

51

THE TENTH SCHEDULE above referred to 1. The Lessee

You Name

Address

2. The Term The Term shall be the term of One hundred and twenty five (125) years from [and including] the day of Two thousand and The duration of this lease is 125 years and starts on the date stated above.

3. The Due Proportion The Due proportion shall be %) per annum

per centum (

The above figure represents your share of the costs of the works and services supplied to the block/Estate by us under the terms of this lease.

THE ELEVENTH SCHEDULE hereinbefore referred to In addition to the rights mentioned in the Fifth Schedule of this agreement, we also reserve the rights listed below (if any).

52

EXECUTED as a DEED by THE COUNCIL

} } OF THE CITY OF NEWCASTLE UPON TYNE } } having affixed hereto its Common } } Seal in the presence of:}

53

SIGNED as a DEED by the said

in the presence of:-

SIGNED as a DEED by the said

in the presence of:-

} } } } }

} } } } }

This agreement has been sealed by us and signed by you in the presence of a witness to confirm that we both agree to abide by the terms and conditions contained in it.

DATED

2007

THE COUNCIL OF THE CITY OF NEWCASTLE UPON TYNE

-to-

LEASE

relating to in the City of Newcastle upon Tyne TERM: 125 years GROUND RENT: £10.00 per annum

Head of Legal Services Civic Centre NEWCASTLE UPON TYNE CONV/

C:\DOCUMENTS AND SETTINGS\NICSAL\MY DOCUMENTS\LEASEHOLD\PLAIN ENGLISH RTB LEASE 12 MARCH 08.DOC

Leasehold Service This information is about our Leasehold service. If you need this in your language or a different language phone 0191 278 8633. This information is also available in large print, Braille and audio tape. We can also arrange for you to see a British Sign Language interpreter.

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É sta es información sobre cómo gestionamos las viviendas que ha arrendado el Ayuntamiento de Newcastle. S i necesita esta información en español o en otro idioma, llame al0191 278 8633.