The Legal Stuff
Occasions when you need a Lease Plan?
The lease plan is essentially a drawing that identifies a leasehold demise within the property – or in other words, a CAD scaled drawing depicting exactly what area of land is included in the lease.
There are a number of reasons why you might need to obtain a lease plan, but the most prevalent are:
A lease of seven years or more is being granted
Land forming part of a registered title or that has been previously unregistered is being sold
A section of land being split into two or more parts and sold
Why do I need another lease plan if I already have one?
There is a good chance that older lease plans will not comply to the new Land Registry regulations – Land Registration Act 2007. If you have a building older than 2007 you may need a new up to date lease plan.
What Happens if I don’t have a Compliant plan?
The reason Land Registry plans are taken so seriously is that it can save a great amount of time and money. Lease plans cost around £200.00 for the smallest properties, with prices increasing as the size of property to be examined increases. Depending on access, this can take several days to undertake.
However, if your property requires a lease plan, it’s worth getting it right the first time. If the plan you provide to the Land Registry is not compliant with their regulations, the likelihood is that your application will be rejected. Should this happen, you will need to resubmit your application with a replacement plan inuring further solicitor fees
Why can’t I use Estate Agents marketing plans?
Estate agents plans are used for marketing purposes only, they are not generally drawn to scale nor very accurate, and do not have the features that will enable them to be Land Registry compliant.
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Lets break it down simply
The basic difference between Land Registry Title and Lease plans is for what you wish to accomplish, Land Registry Lease Plans are primarily used when leasing or renting a building, this dictates the boundary of what the landlord and tenant are responsible for in the upcoming lease between the two parties. To accomplish this an Internal floor plan is produced showing the demise of the property and depending weather its a FRI (Full Repair and Insure) or IRI (Internal Repair and Insure). Under an FRI lease the landlord has no repairing or insuring liability. To show this a Red line is drawn around either the Internal wall or External wall dependant on type of lease. Accompanying the floor plan certain Location maps with boundaries at different scales are also shown with various other items to make it Land Registry Compliant.
A Title Plan is produced normally to show Land and property for the Title Deeds, this type of Plan is normally asked for by your Solicitor, The purpose of the title plan is to support the property description in the register by providing a graphic representation and identifying the general extent of the land in a registered title. In addition to showing the land in a registered title, a title plan may contain other plan references which identify any parts of the land or adjoining land affected by entries in the register, such as easements, covenants or areas of land removed from the title. The title plan was previously known as the ‘filed plan’ and you may still see it described in this way. This type of plan shows the Land only at different scales with various land registry requirements to make it compliant.