​Residents of one of Newcastle’s most beautiful streets have claimed they have been left “prisoners in their own homes” as their properties become practically worthless.

Due to a legal complication, residents of the St Thomas’ Estate are unable to extend the leaseholds on their properties or buy the freeholds, rendering them unsellable.

The freehold, and power to extend leaseholds, lies with the St Mary Magdalene and Holy Jesus Trust which owns the land.

Founded in the 12th century, the trust is made up of influential figures like Sir Leonard Fenwick and city councillors and exists to care for elderly Freemen of the City.

The Georgian terraces are one of the most desirable locations in the city centre, a rare example of a home for sale on the street is listed for £520,000 with estate agent Sanderson and Young.

Residents of St Thomas’ Estate are unable to sell their homes because the time remaining on the leaseholds has dropped below the 70 to 80 year limit at which a bank will grant a mortgage.

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The trust will not grant an extension or sell the freeholds because, a spokesperson said, they received legal advice from a high-ranking QC that the wording of current laws forbids them from doing so.

A spokesperson for the Charity Commission said the matter was out of its “regulatory remit” and the decision to renew the leaseholds lies solely with the trust.

The means unless there is a change in the law or the St Thomas’ Estate residents launch a successful legal challenge to the advice received by the trust, they are powerless to watch their prize assets plummet in value.

St Thomas Street, Crescent and Square in Newcastle City Centre
St Thomas Street, Crescent and Square in Newcastle City Centre

Howard Philips, one of the residents effected by the situation, said: “We bought this house as a family home but our children have moved on, me and my wife are in our seventies and we would like to move into a smaller house with fewer stairs.

“This whole affair has devastated us, we really don’t know what to do next.”

Phyll Buchanan, 60, is in the same situation.

She said: “We had an offer put in on the house in 2014 but as soon as the leasehold situation came to light it was over.

“Buying this house was meant to provide security for our daughters but now it’s just a wasted asset and, rather than leaving them something, we’ll be burdening them with a house they must maintain but can’t sell.”

Homeowners of St Thomas' Crescent and St Thomas' Street who say they are trapped in their houses by the leaseholder of the land. Pictured are Howard Phillips, Clare Armstrong, Margaret Phillips and Phyll Buchanan
Homeowners of St Thomas' Crescent and St Thomas' Street who say they are trapped in their houses by the leaseholder of the land. Pictured are Howard Phillips, Clare Armstrong, Margaret Phillips and Phyll Buchanan

It’s thought around 10 houses left in the legal no-man’s-land.

Newcastle Central MP Chi Onwurah secured an urgent parliamentary debate to overhaul “outdated” housing laws which have created the bizarre situation on November 1.

Ms Onwurah said: “My constituents have found themselves in a position where the asset that they have worked all their lives for have become a liability.

Newcastle Central MP, Chi Onwurah
Newcastle Central MP, Chi Onwurah

“Bureaucracy, a loophole in the law and the attitude of the Charity Commission are driving people into financial distress which is just unbelievable.

“This is some sort of Dickens-meets-Kafka situation which really should not be happening in the 21st century.”

She called an upcoming housing bill to help resolve the grey area and for more decisive action from the Charity Commission.

St Thomas Street, Crescent and Square in Newcastle City Centre
St Thomas Street, Crescent and Square in Newcastle City Centre

Now the Department for Communities and Local Government said it would intervene in the dispute between the Mary Magdalene and Holy Jesus Trust and residents, after their case was raised by Ms Onwurah.

The current chair of the trust, Sue Pearson, a Newcastle City councillor, said the trustees have “a great deal of sympathy” for those impacted but the trust’s hands are tied by the legal advice.

A Charity Commission spokesperson said: “The Commission has previously corresponded with Ms Onwurah twice on this matter, clarifying that issues of this nature are not within the regulatory remit of the Charity Commission.

“As our letters to Ms Onwurah state, the charity must seek professional advice if they are not suitably experienced in this particular issue, and it would seem that they have sought and followed such advice.”