Crossover Leases
ARTICLES AND FAQS
Some of the things people ask and problems they have, with our comments and answers.
This is a set up where you buy a leasehold flat, but you will also own the freehold of the flat above or below yours. The person who has the lease of that other flat owns the freehold of your flat.
The advantage is that there is no outside freeholder/landlord to whom you have to pay ground rent or other charges. There's just you and the other flat owner.
The scheme has been used by Laing Homes Ltd for their maisonette sales and we understand it is popular on Tyneside. The scheme only really works where there is little in the way of shared areas such as halls and stairways and communal gardens. Also, each building, which could be the equivalent of a detached, semi-detached, or even a terraced house, can only have two flats in it.
The leases should provide that when a lease changes hands, the freehold of the other flat is also transferred to the same person.
Most lenders will accept this scheme, but do insist that both the lease of the flat and the freehold of the other flat are included in their mortgage.
Whether flats using this scheme are mortgageable with a particular lender can be checked by looking at the Council of Mortgage Lender's Handbook. When you go to the website (see next link) you need first to "Select Handbook" - choose "England & Wales", as this website is only about English/Welsh law - and then select your particular lender from the drop down list. You will want to look at Parts 1 & 2 for your lender. Paragraph 5.7.5 deals with Crossover Leases. Here is the link: CML Handbook.
Of course, when considering a mortgage, you may not know the precise set up. Sellers can be notoriously vague because they often find it difficult to understand the detailed arrangements themselves! See the general advice on the page about Mortgages for flats with some freehold involvement.
Copyright: Richard Webster & Co 2010
Richard Webster & Co 30 Leigh Road Eastleigh Hampshire SO50 9DT
Crossover, Criss-Cross or Tyneside Flat Schemes.
Page Last Revised 14/02/11