What is a crossover lease?
A crossover lease is when two people live in the same building, but have their own flat. Essentially, a building with two seperate flats. Each homeowner has a lease to the flat they own AND the freehold to the other flat in the building. They are commonly used with maisonettes. Here’s a visual:
Things to remember about crossover leases
- There will always only be two people involved with a crossover lease (unless one person owns both flats), and they are the two owners of each flat in the building. There is no external landlord.
- The lease of the one flat and the freehold of the other always stay together and should always both be mortgaged to the lender.
- Not all mortgage lenders will give you a loan on a property involved with a crossover lease. If you plan on purchasing, you should arrange a mortgage offer before making any offers.
- Crossover leases are common in certain areas of the country but considered a defective title in other areas.
- Crossover leases aren’t clear-cut to deal with. You should consult with your solicitor to find out all the implications involved with the property.
- If the property has a roof, it’s important to carefully scrutinise the leases to see if development is allowed in that space and who has right over the space.
- If you’re a leaseholder, you should check the freeholder’s (your neighbour’s) lease to see if you need permission to make alterations to your flat and vice versa.
Unfortunately I don’t know too much about crossover leases. If anyone else knows more about the subject, please let me know and i’ll fill in the gaps.