How to Map a Sub-Lease
General
Section 3(2) of the 2012 Act permits the Keeper to make up and maintain a title sheet for a registered lease. This includes leases that are sub-leases of other long leases (known as head leases).
A registered sub-lease, however, is not allocated its own cadastral unit; instead, the title sheet for the sub-lease (the sub-tenant's interest) will refer to the sub-leased subjects as being all or part of the cadastral unit created for the plot of land (the ownership interest, also known as the head landlord's interest).
If the registered sub-lease is of subjects within a tenement property, the title sheet for the sub-lease (the sub-tenant's interest) will refer to the sub-leased subjects being part of the cadastral unit created for the plot of land (the tenement steading cadastral unit for the tenement block within which the ownership interest lies).
What is a sub-lease
A sub-lease is created when a tenant (someone who already holds a lease of someone else's land) sub-lets all or part of those leased subjects to another party (the sub-tenant). The result is that the sub-tenant pays rent to the tenant, and in turn the tenant pays rent to the head landlord (owner). It effectively creates a new level of tenant's interest.
Please note that the granting of a sub-lease by a tenant is not the same as the granting of an assignation for part of the leased subjects by a tenant. If you are unsure if a sub-lease is being granted/created or if the deed is a form of assignation, please speak with your referral officer.
When we register a sub-lease, there is a bit more to consider than when registering a lease as we need to think about two sets of relationships:
The relationship between the sub-lease and the cadastral unit/tenement steading cadastral unit, and
the relationship between the sub-lease and the lease (also known as the head lease).
Firstly, is the sub-lease of the whole cadastral unit (a sub-lease of whole), or is it a sub-lease of part of the cadastral unit/tenement steading cadastral unit? This will dictate the style of mapping to be used.
Secondly, is the sub-lease over all of the subjects in the head lease, or is it a sub-lease only affecting part of the subjects in the head lease? This will dictate (a) the information that the plans settler needs to provide to the legal settler so that the correct information is shown in a Schedule of Sub-Leases if there is an existing head-lease title sheet, and (b) the style of mapping to be used if there is an existing head lease title sheet.
Sub-Leases & APR
As with leases, it is not possible to register a sub-lease in the land register unless the ownership of the underlying plot of land (cadastral unit) is registered.
When the ownership of the plot of land is not yet registered, then the process known as Automatic Plot Registration, or APR, will be used to create a title sheet in the name of the owner of the plot of land (the head landlord) and the cadastral unit will be mapped to either (i) the same extent as the subjects in the head-lease when the head lease is also pending registration, or (ii) the sub-lease when the head lease is not currently being registered. This ownership title will be subject to the head lease, which in turn will be subject to the sub-lease that is being registered.
For a sub-lease of subjects within a tenement property when APR is triggered, the Keeper will either use the existing tenement steading cadastral unit for the block, or will establish a new tenement steading cadastral unit. A new title sheet will be created for the head landlord's interest in the subjects, describing them with reference to the tenement steading cadastral unit for the tenement block, and this title sheet will be subject to the head lease. In turn, the head lease will become subject to the sub-lease.
When the plot of land is already registered, while APR is not required, it may be necessary to update the registered title for the underlying plot of land to make it 2012 Act compliant before the registration of the sub-lease can be completed. This ownership title will be subject to the head lease, which in turn will be subject to the sub-lease that is being registered.
In all of these scenarios, please note that there is no requirement for a title sheet for the head lease to be created if the head lease is currently unregistered/is not pending registration.
Further details on how to map an APR application can be found on Further Guidance page Mapping an APR - but remember that if it is a sub-lease you are registering this should not be referenced in any way in the ownership title or cadastral unit. Only the head-lease will be referred to/referenced.
Sub-leases & head leases
When a sub-lease is being registered, whilst it is essential that the ownership of the underlying plot of land is registered, there is no requirement for the head lease to be registered. Once the ownership title to the plot of land is registered, any recorded leases affecting that plot of ground are "deemed" to be registered by the fact that they are referenced in the title sheet for the plot of land. There is therefore no requirement to create a title sheet for the head lease until such times as a transaction over that lease is received for registration
There are 3 basic scenarios you may come across:
The head lease is pending registration along with the sub-lease. An application will exist for each of them, and both will need to be mapped and settled. The head lease should be settled following the relevant guidance (lease of whole, lease of part, etc) with the added steps of reflecting the relationship between it and the sub-lease. The ownership (head landlord's) title will reflect the relationship between it and the head lease, with the appropriate Schedule of Leases information added to the title sheet, and a plans reference provided if the head lease is a lease of part. The head lease title sheet will then reflect the relationship between it and the sub-lease, with the appropriate Schedule of Sub-Leases information added to the title sheet, and a plans reference provided if the sub-lease affects only part of the head lease.
The head lease is currently unregistered/is not pending registration. No new application or title for the head lease should be created. The ownership (head landlord's) title will reflect the relationship between it and the head lease, with the appropriate Schedule of Leases information added to the title sheet, and a plans reference provided if the head lease is a lease of part.
The head lease is already registered. There will often be some additional steps required from the plans settler. It may be necessary to make some updates to the existing head lease title sheet to make it 2012 Act compliant. The ownership (head landlord's) title will reflect the relationship between it and the head lease, with the appropriate Schedule of Leases information added to the title sheet, and a plans reference provided if the head lease is a lease of part. The head lease title sheet will reflect the relationship between it and the sub-lease, with the appropriate Schedule of Sub-Leases information added to the title sheet, and a plans reference provided if the sub-lease affects only part of the head lease.
Key points for plans settlers
Remember, when deciding on the settling guidance to follow for a sub-lease, the distinction between a sub-lease of whole & of part is taken from the relationship between the sub-lease and the plot of land (ownership title or tenement steading cadastral unit), and not between the sub-lease and head lease.
Examples of mapping style - sub-leases
1 Head lease of whole and Sub-lease of whole (non tenement)
2 Head lease of part and Sub-lease of further part (non tenement)
3 Head lease of part and Sub-lease of further part (tenement)