When you own a cross lease property, one of the most important documents you’ll come across is the flat plan. It might seem like just another piece of paperwork, but the flat plan plays a crucial role in how your property is managed and valued. Over time, it’s not uncommon for flat plans to become outdated. Perhaps changes have been made to the property that aren’t reflected in the original plan, or maybe the plan was never entirely accurate to begin with. Whatever the reason, updating your flat plan is an essential step in ensuring your property’s layout is correctly represented. In this blog, we’ll explore the importance of having an accurate flat plan, the benefits of keeping it up to date, and how it can impact your property’s value and your peace of mind.

What is a Flat Plan?

A flat plan is a technical drawing that shows the layout of your property and the common areas shared with other leaseholders in a cross lease arrangement. This plan is attached to your property's title and is a legal document that outlines boundaries, structures, and sometimes even the arrangement of gardens or parking spaces. Essentially, it’s a map of your property as it exists on the ground. The flat plan ensures that everyone involved in the cross lease—whether that’s two homeowners or several—understands exactly what is theirs and what is shared.

Why Flat Plans Become Outdated

Over time, many properties undergo changes. Homeowners might add extensions, build decks, or even just reconfigure the garden. While these changes might seem minor, they can significantly affect the accuracy of your flat plan. If your flat plan doesn’t accurately reflect the current state of your property, it can lead to confusion or even disputes between leaseholders. For example, if you’ve built an extension that isn’t on the flat plan, there could be questions about whether it’s part of your leasehold area or encroaches on shared space. Keeping your flat plan updated ensures that it accurately represents the property as it currently stands.

Benefits of Updating Your Flat Plan

1. Avoiding Disputes Among Leaseholders

One of the primary reasons to update your flat plan is to avoid potential disputes with other leaseholders. When a flat plan is inaccurate or outdated, it can lead to misunderstandings about who owns what part of the property. For instance, if one leaseholder has made changes to their part of the property that aren’t reflected in the flat plan, it could cause disagreements about property boundaries. By updating the flat plan, you can ensure that everyone has a clear understanding of the property layout, reducing the risk of disputes.

2. Easier Property Sales

When it comes time to sell your cross lease property, having an accurate and up-to-date flat plan is crucial. Potential buyers will want to see exactly what they’re purchasing, and a flat plan that accurately reflects the property can provide peace of mind. An accurate flat plan can speed up the sale process. If a buyer sees that the flat plan is outdated, they may request that it be updated before the sale goes through, which can delay the process. By keeping your flat plan current, you can avoid these delays and make your property more attractive to buyers.

3. Ensuring Compliance with Local Regulations

Local councils often have strict regulations about property modifications, especially in cross lease situations. If you’ve made changes to your property that aren’t reflected in the flat plan, you could be in breach of these regulations. Updating your flat plan ensures that all changes are documented and that your property complies with local laws. This can save you from potential fines or legal issues down the line.

4. Accurate Valuation of Your Property

An up-to-date flat plan can also affect the valuation of your property. When a property is valued, the valuer will look at the flat plan to determine the property’s layout and boundaries. If the plan is outdated or inaccurate, the valuation might not reflect the true value of your property. For example, if you’ve added an extension that isn’t on the flat plan, it might not be included in the valuation, potentially lowering your property’s market value. Updating the flat plan ensures that all aspects of the property are considered in the valuation, giving you a more accurate picture of your property’s worth.

5. Facilitating Future Modifications

If you plan to make further modifications to your property in the future, having an up-to-date flat plan can make the process easier. When you apply for building consent, the council will look at your flat plan to assess how the proposed changes will affect the property. If the plan is outdated, it could complicate the approval process. By keeping your flat plan current, you can streamline the process of getting approval for future modifications.

The Process of Updating Your Flat Plan

Updating your flat plan might sound like a daunting task, but it’s a straightforward process when done with the right professional help. Here’s a general outline of what’s involved:

1. Surveying the Property

The first step in updating your flat plan is to have the property surveyed by a professional land surveyor. The surveyor will assess the current layout of the property and any changes that have been made since the original flat plan was created. This might involve measuring the property, taking note of any new structures or modifications, and comparing the current state of the property with the original flat plan.

2. Preparing the New Flat Plan

Once the survey is complete, the surveyor will create a new flat plan that accurately reflects the current layout of the property. This plan will show the boundaries of each leaseholder’s area, as well as any shared spaces. The new flat plan will then be submitted to the local council for approval.

3. Gaining Approval

Before the updated flat plan can be registered, it must be approved by the local council. The council will review the new plan to ensure that it complies with local regulations and that any modifications to the property are in line with the law. Once the council has approved the plan, it can be registered with the property’s title.

4. Registering the Updated Plan

The final step in the process is to register the updated flat plan with the property’s title. This makes the new plan a legal document and ensures that it is recognised by all relevant parties. Once the plan is registered, it becomes part of the property’s official records, and all future property transactions will refer to this updated plan.