A Criss Cross lease is where each owner holds the lease of their own flat and the freehold of the other flat. This is also known as a North Tyneside lease. Criss Cross leases are a particular form of Tyneside lease, the other form being a South Tyneside lease, which is where one owner is the freeholder of the entire building and the other owner owns a leasehold interest in their flat. For more information, feel free to look at our blog on Tyneside leases.
A leasehold property in the UK is a type of ownership where you own the property itself, such as a flat or apartment, for a fixed period as specified in a lease agreement, but you do not own the land on which it stands. On the other hand, a freehold property in the UK is when you own both the building and the land on which it stands on.
What Are Criss Cross Leases?
A North Tyneside lease, commonly known as a criss cross lease, is a lease where the owner of one flat/apartment is the landlord of the other. For example, take this scenario where Caroline holds the leasehold title to the ground floor flat and the freehold title to the upstairs flat, and Andy holds the leasehold title to the upstairs flat and the freehold title to the ground floor flat. The purpose of this arrangement is to allow each owner to enforce lease covenants against the other, particularly in relation to repairs, insurance, access and alterations.
North Tyneside leases share equal responsibilities, where the freeholder of the upper floor flat is responsible for maintaining the roof and the freeholder of the ground floor flat is responsible for maintaining the foundations of the building. However, there are some responsibilities that are shared between the owners, such as the water pipes or the electrical wirings that run along the entirety of the building.
The Advantages and Disadvantages of Criss Cross Leases
Here is a brief outline of the advantages and disadvantages of Criss Cross Leases.
The Advantages of Criss Cross Leases
- Shared responsibilities: A Tyneside, or “criss-cross”, lease usually provides a clear split of repair and maintenance responsibilities between the two flat owners. For example, one owner may be responsible for certain lower structural parts of the building, while the other may be responsible for upper structural parts, with both owners’ sharing responsibility for items such as drainage, external pipework or other services used by both flats. This can create a fairer arrangement, as each owner has defined obligations and the burden of maintenance and repair is not placed entirely on one party.
- Equal enforcement: Because each owner holds both a leasehold interest and a reciprocal freehold interest, they are able to enforce equivalent covenants against one another. This creates a more balanced and reciprocal legal relationship between the two owners. For example, the upper flat owner can enforce a covenant of maintaining the foundations of the building to the ground floor flat owner and vice versa with the ground floor flat owner imposing a covenant of roof maintenance for the upper floor flat owner.
- Lower initial costs: Due to the nature of criss-cross leases, the arrangement allows the flat owners to share responsibilities and maintenance obligations directly, which can reduce the need for third-party management. In contrast, other leasehold arrangements often involve appointing a management company or managing agent to deal with building maintenance, which can result in additional costs for the leaseholders.
The Disadvantages of Criss Cross Leases
- Resale and mortgage issues: Some mortgage lenders may be more cautious when lending on criss-cross leases and may impose additional requirements. For example, they may require the buyer’s mortgage to be registered against both the leasehold title and the related freehold title, and may also require appropriate Land Registry restrictions to ensure the two titles are transferred together on any future sale.
- Potential for disputes: Because the two flat owners have reciprocal rights and obligations, disputes can arise over matters such as maintenance, repairs, insurance, access for works, or the division of costs. This can be particularly problematic where the lease terms are unclear or where one owner fails to comply with their obligations.
- Complexity: Criss cross leases are more complex than standard leasehold arrangements and require careful conveyancing. In particular, both the leasehold title to the flat being purchased and the corresponding freehold title in the other flat usually need to be transferred correctly. If the reciprocal freehold title is missed or left in a previous owner’s name, this can cause delays, title defects, and complications on resale.
Key Issues to Check Before Buying a Criss Cross Lease Property
Before purchasing a property subject to a criss-cross lease, it is important to ensure that the title structure is properly understood. The buyer will usually need to acquire both the leasehold title to the flat and the corresponding freehold title to the other flat. The lease should also be reviewed to confirm that it contains adequate rights of support, shelter, access, repair, insurance and enforcement.
Particular attention should be given to the insurance provisions, as the building should ideally be insured as a whole. The lease should also clearly set out who is responsible for maintaining the roof, foundations, external walls, drains, pipes and shared services. Where the lease is unclear or defective, a deed of variation may be required to correct the position.
Mortgage lender requirements should also be checked at an early stage, as some lenders may require both the leasehold and freehold titles to be charged and may insist on appropriate Land Registry restrictions to prevent the titles being separated in the future.
How Starck Uberoi Solicitors Can Help
Our knowledgeable leasehold solicitors are committed to providing an efficient and effective service in all matters and can help you with your lease extension with ease. Our conveyancing solicitors have vast experience in dealing with a wide variety of residential conveyancing and property matters. Our experienced lawyers provide tailored advice to each client regarding complex leasehold and conveyancing matters, such as Tyneside leases.
We are Law Society Accredited under the Conveyancing Quality Scheme (CQS) in recognition of the excellent standard of conveyancing service we offer. We take a client focused approach dedicated to making the conveyancing process as quick and easy as possible, and we offer comprehensive and convenient no obligation online conveyancing quote. We are also trusted conveyancers on the lender panels for the majority of high street lenders including Barclays, Halifax, HSBC, Nationwide, NatWest and Santander.
We go above and beyond to provide a comprehensive service to all clients for each matter. To book an appointment, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk. Our offices are located in Brentford, Richmond, Ealing, London Belgravia and Canterbury, all within easy reach by public transport. Our partner, Raminder Uberoi, can also provide a Notary Public service at any of our London offices.
FAQ: Criss Cross Leases
A Criss Cross lease is a type of Tyneside lease, most commonly associated with a North Tyneside lease. Under this structure, each flat owner usually owns the leasehold title to their own flat and the freehold reversion to the other flat. The other common arrangement is a South Tyneside lease, where the ownership structure is different and one owner may own the freehold of the whole building.
Key checks include:
whether the leasehold and freehold titles are correctly paired;
the length of the lease term;
repair and maintenance obligations;
building insurance arrangements;
rights of access for inspection and repair;
rights of support, shelter and protection;
restrictions on alterations or extensions; and
whether the title structure and lease terms meet mortgage lender requirements.
Criss Cross leases are commonly used for houses converted into two flats. They create a reciprocal legal structure, allowing each flat owner to enforce lease obligations against the other, particularly in relation to repairs, access, insurance, and use of the property.
Responsibility for repairs depends on the wording of the lease. In many North Tyneside arrangements, the ground floor flat owner may be responsible for parts of the lower structure, such as foundations, while the upper floor flat owner may be responsible for the roof or upper parts of the building. Shared services, such as drains, pipes, electrical wiring or external services, may be the joint responsibility of both owners.
Criss-cross leases can be acceptable to mortgage lenders, but some lenders may apply additional requirements because of the unusual title structure. A lender may require both the leasehold title and the related freehold title to be charged, and may also require Land Registry restrictions to ensure the two titles are not separated on a future sale. For more information, we can recommend mortgage brokers to ensure a smooth process.
