Can you still cross lease in NZ?

New Zealand has more than 200,000 properties on cross leases, with around half of those in Auckland. The majority of owners live in harmony with their neighbours and it’s not an issue.

What are the rules of cross lease NZ?

Cross lease ownership means that any structural changes to the property or shared areas must be agreed upon by all the owners. This means you might need to get the other owners’ agreement on making any changes to the property – even for things like painting the exterior, building a deck or putting up a fence.

What are the downsides of a cross lease?

The main disadvantage with a cross lease title is you need the consent of all title holders to make changes to the land. A freehold title gives you sole rights to use the land, so a cross lease to freehold conversion makes that possible.

How much does it cost to convert a cross lease to freehold in NZ?

The cost is often split evenly between the owners, as everyone benefits from converting to fee simple titles. As a rough indication, costs are usually between $23,000 – $25,000 for a two – unit lot cross-lease conversion.

How much does it cost to convert a cross lease to freehold?

The cost for surveyors to manage this process is approximately $8,500. The council will require a resource consent application deposition to process the resource consent application. The application deposit fee for a cross lease subdivision (on its own) is approximately $2,000 (in Auckland, correct at time of writing).

Do you own the land on a cross lease?

In a cross lease title, property owners share ownership of the land and the buildings on it. If you hold a cross lease, you are a part-owner of every building on the plot of land – not just the one you occupy – with the other leaseholders.

Who owns the land in a cross lease?

When you have an interest in a cross-lease property, you and your neighbours own all of the land. This means that while you will each have a separate lease for your house or flat you have shared ownership of the entire site.

Can you freehold a cross lease?

You can convert your cross lease property to a freehold title through a subdivision and by ensuring infrastructure is separated out for each future freehold lot. This can add potentially significant value to your property, as it lifts the restrictions and avoid the pitfalls of cross lease.

Can you change cross lease to freehold NZ?

Convert your cross lease to freehold and maximise the value of your property. The Property Institute of New Zealand advises that converting a cross lease property into a fee simple ownership structure significantly increases the value and saleability of a property.

Can cross lease become freehold?

While there are some advantages to maintaining cross leases, including having an element of control over what your neighbour / cross lease owner can and cannot do on their property, it may also be beneficial to convert your cross lease title to a fee simple title (commonly called freehold) as you will have more …

Is it OK to buy a cross lease property?

Each type means different rights, responsibilities and restrictions for the owner. As long as a buyer gets good legal advice about the cross lease agreement for a particular property, it can still be a suitable option, depending on the person’s individual homeownership needs and goals.

Can you break a cross lease?

LEAVING A CROSS-LEASE The process of leaving a cross lease is costly, but the cost would likely be offset by a higher property value if it was subdivided into fee simple titles. Firstly, Pidgeon said owners should try and get agreement amongst all the cross lease shareholders to split.

How common are cross leases in New Zealand?

New Zealand has more than 200,000 properties on cross leases, with around half of those in Auckland. The majority of owners live in harmony with their neighbours and it’s not an issue.

What is a cross lease?

That is why when you read the title, the houses are called Flats (sometimes Areas) and the title will refer to leases. A cross lease is essentially a historical form of development that was extremely popular in the 1970s and 80s, as it avoided the subdivision rules and restrictions of the day.

How to manage a cross lease situation with your neighbours?

Maintaining good relations with your neighbours is always a good idea, but it’s essential when you’re in a cross lease situation. Covenants (terms, conditions and restrictions on the property that are noted on the title) will spell out the rules.

Do you need a resource consent to cross lease a house?

You need to involve your fellow cross lease owners when you want to do things with your property. With your existing house you are autonomous and only have to comply with the District Plan. If you want to do something that needs a resource consent you only have to deal with the Council.