Firstly, what is a Cross lease title?

Cross lease developments evolved in the 1970s as a quicker and cheaper alternative to doing a proper subdivision and they were designed to get around certain subdivision rules. The main advantages of cross leases were all but removed with the introduction of the Resource Management Act in 1991, when they effectively came to an end. At face value a cross lease looks the same as a proper subdivision, however there are some very important exceptions which anyone who owns a cross lease property should know about. 

• All owners of cross lease properties own an undivided share (%) in the entire property and they lease an area of land that their house sits on from the other cross lease owner(s).
• At the time the cross lease was set up, a survey plan was prepared showing the position of the houses and buildings and that is the land that they lease from the other cross lease owner(s).
• If any alterations or additions are made to any of the houses or buildings that change the footprint of land they occupy, your title becomes defective.
• Carrying out any alterations or additions without obtaining all other cross lease owners written permission is illegal and may invalidate your insurance.
• If any alterations or additions have been made, the cross lease needs to be updated, which requires a new survey plan to be prepared and the lease to be updated and signed by all cross lease owners.  This can be an expensive and difficult exercise if the other cross lease owners do not want to give their approval.

There has been quite a lot in the press recently about the pitfalls of owning a cross lease.  Have a look at this interesting article put together by the NZ Herald: Cross about cross-lease:Battles from the property combat zone

What can you do?

Fortunately there is a fairly simple solution, which involves converting your cross lease to a proper Fee Simple title.  This process is managed by a subdivision application to the Council.  As your property already contains a house, the process is usually quite straight forward and cost effective.

NB. This information is of a general nature, and the process for any particular applicant may vary according to the circumstances.

What benefit is this to me?

Your property is a large investment. By upgrading your cross lease to a proper Fee Simple title you will not have to gain approval from your neighbouring cross lease owner to do anything and the land around your house becomes your land.  This will generally increase the value of your property and make it more attractive should you wish to sell.

What can we do for you?

At The Surveying Company we have a team of Planners, Surveyors and Civil Engineers with many years of experience in this type of work.  We will help you convert your cross lease to a robust and superior Fee Simple title and manage the job from start to finish. 

You are in safe hands!

If you are interested and would like to know more, please don’t hesitate to contact us at The Surveying Company.  Initial Consultation is free!