Simplifying Cross Lease Conversion in New Zealand
A Game changer for Property Owners
Converting cross lease titles to freehold ownership is an underutilised service in New Zealand’s property market. This process can not only enhance a property’s value but also simplifies ownership and sale. At McKenzie & Co, our expert team is well-equipped to handle these conversions efficiently, ensuring a smooth transition for property owners.
Understanding Cross Lease Conversion
Cross lease properties involve multiple owners sharing an undivided interest in the land, with each owner leasing a specific part of the property. This form of title was common in the 1960s to 1990s as it avoided the subdivision process through Council, however since the introduction of the Resource Management Act 1991 a cross lease is now considered to be a subdivision and therefore is no longer a desirable way to title land. Converting to freehold (or fee simple) means transitioning to individual ownership of the land beneath your property. This change provides clearer ownership rights and often can increase the market value of the property.
The Conversion Process
- Initial Consultation and Assessment: Our team begins with a thorough assessment of your property to determine the feasibility and requirements. This may include agreement with neighbours and assessment of site works (such as drainage)
- Navigating Legal and Regulatory Compliance: Converting to freehold involves navigating various legal and council processes, including an application to council for subdivision consent, our team can support with this.
- Detailed Surveying and Documentation: We conduct comprehensive surveys, including marking the new boundary positions on site and preparing the necessary documents and plans for submission to Land Information New Zealand (LINZ).
- Final Approval and Title Issuance: Once all surveys and legal processes are completed, we assist in obtaining final approval from Land Information New Zealand (LINZ) and the issuance of new freehold titles.
Benefits of Cross Lease Conversion
- Increased Property Value: Freehold properties can typically be more valuable than cross lease properties, making them more desirable to buyers
- Simplified Ownership: Freehold ownership eliminates the complexities associated with cross lease arrangements, providing clear, individual ownership
- Ease of Alteration: Property modifications can be made without the need for consent from other title holders, offering greater flexibility and makes it straightforward when it comes to rights to access.
At McKenzie & Co, we pride ourselves on making all surveying seamless as possible for our clients, we are collaborative and provide full clarity on the process and whether it is worth embarking. If you’re considering converting your cross lease property to freehold, contact us today to learn how we can assist you.
