Wanting to buy a cross-lease property? Check the Flat Plan!
A Cross Lease Title is different in a number of ways from a Freehold Title. We discuss these in our earlier insight What does it mean to own a Cross Lease Property? | Young Hunter Lawyers.
A Cross Lease Title includes a Flat Plan, which records the areas which are used exclusively by each property owner together with any common areas (for example, driveways) which can be used by all owners.
With a Cross Lease property, any additions or alterations which change the external dimensions, or “footprint”, of the buildings must be recorded on a new Flat Plan. If the Flat Plan is not consistent with the physical layout of the buildings, then technically speaking the Cross Lease Title is defective.
In those circumstances, a new Flat Plan would need to be prepared by a surveyor, and new Titles would be issued. The written consent of the other Flat Owners, and their banks if they have a mortgage over their property, would be required. This can be a time consuming and expensive process, and one of the main disadvantages of owning a Cross Lease property, as this is not something that is required when it is a Freehold Title.
To assist with your property search, you may wish to complete an initial check of the Flat Plan to determine whether there may be a Title defect.
Below is an example of a property where the Flat Plan (on the left) is consistent with the physical layout of the property. There is no Title defect.
Below is an example of a property where the Flat Plan is not consistent with the physical layout of the property. This is because the location of the garage (shown as “B” on the Flat Plan) is recorded as being in line with the back of the house. You’ll see from the aerial map of the property that the garage is actually located much closer to the road. There is therefore a defect in this Title.
While this is an obvious defect, it can often be unclear whether a Title has a defect or not. Seeking advice from an expert is important. We are experienced in providing advice in relation to Cross Lease Titles, so get in touch if you need some further information for your particular circumstances.
This insight is only intended to provide general advice on this issue. For further information or specific advice please contact our property team who will be happy to assist.
