Shares where flats have been enlarged or split

Problems may occur where flats have been subdivided, merged or enlarged into the loft or basement after the Title Deeds were drawn up.

Ideally, title deeds for all flats should have been changed to reflect the alterations.  If the Title Deeds have not been changed, then the following guidance may help.  In the long term however, you should change the Title Deeds.

Where the Title Deeds say shares are to be divided equally, this is not a problem to calculate.

Where shares are by Rateable Value (RV): the Title Deeds have become unusable in this respect as there will be no RV for the flat that has had a change in floor area. Refer to what the Tenements Act says about shares.

Where shares are by percentage or fraction: divide the share for that flat according to what the Tenements Act says. 

Example. Before the flat was subdivided, owners were required to pay a third (33%) of common costs.  The flat was divided into 2 with one flat being twice the size of the other. The owner of the larger subdivided flat now pays 33% x 2/3 which is 22% of all common costs.  The owner of the smaller flat pays 33% x 1/3 which is 11%.