Cross Lease Titles - Potential Issues

Cross lease is an historic form of property ownership which has many issues.

A cross lease title means you share ownership of the land with owners of the other flats or units, and you lease the flats from each other. If you think this sounds complicated then you are right!

Potential issues are: unclear definition of exclusive use and common areas; obtaining permissions from other owners; and keeping the plan of the titles up-to-date.

Any changes to the external shape of cross lease buildings should be approved by all flat owners first, and the title updated to match the changes – this requires a council resource consent, a surveyor, and a solicitor. Updating the title can take time and be expensive.

If the title is not updated, then it is likely at the time of sale, potential purchasers will consider the title defective and require it is updated – if you haven’t got the other flat owners’ permissions, then the sale of your property could be in jeopardy!

The most common and standard form of title is fee simple (freehold). This does not have the above issues, and is a more robust form of title. Our Survey team are often called upon to assist with changes to crosslease lease areas or the conversion of crosslease titles to freehold titles. For more information on these issues give our team a call.

Frequently Asked Questions:

What is a cross lease title and how does it differ from freehold?

A cross lease title means you share land ownership with other unit owners and lease your flat, unlike freehold which is sole ownership and simpler to manage.

What problems can arise with cross lease properties?

Issues include unclear exclusive use areas, needing consent from other owners for changes, and ensuring title plans are current and legally accurate.

How do I make changes to a cross lease property?

Any external modifications require consent from all flat owners, a surveyor, a solicitor, and often a council resource consent to update the title.

Can Birch help with cross lease issues or conversion to freehold?

Yes, our Survey team assists with updating lease areas, resolving cross lease disputes, and converting cross lease titles to freehold for simpler ownership.