Transform your real estate investments with Crosslease Conversions. Experience the numerous benefits of converting crosslease titles to freehold ownership to increase value, simplify the sales process, and gain full control over your property.

Brief History of Crosslease Titles

Prior to the commencement of the Resource Management Act, but less common since then, many small lot urban subdivisions were undertaken by way of the creation of crosslease titles. Crosslease titles create shared ownership of the land in the underlying title and a 999 lease in the buildings shown on the crosslease plan. This form of ownership circumvented the Council's requirements to apply for subdivision consent and was therefore a cheap way to divide land and overcome Council restrictions on minimum lot sizes. For these reasons, they were very popular and a number of urban titles still exist under crosslease ownerships.

However, crosslease titles have many underlying issues. The lease of the building is defined by the shape of the building that existed when the survey was done and any change to the footprint requires a resurvey and the approval of all other owners of the crosslease title. Crosslease titles also have exclusive use areas (parts of the title intended to be used by the lessee of the dwellings) and common areas (parts of the title intended to be used by the lessees of all of the dwellings). Historically these areas are poorly defined and the characteristics of a crosslease title can also give rise to problems for the owners.

Why Convert Your Crosslease Title?

  • Increased Property Value: Freehold titles typically hold higher market valuations than crossleases.
  • Simplified Ownership: Eliminate complications associated with crosslease, granting clear, individual ownership.
  • Ease of Alteration: Freehold conversion allows for modifications without the consent of other title holders.
  • Attractiveness to Buyers: Offer a more appealing and less complex ownership structure to potential purchasers.
  • Legal Clarity: Establish clear legal access to utilities and preclude common misunderstandings associated with shared areas.

How Can We Help You?

At Birch, our expert team of Surveyors specialises in navigating the complexities of crosslease conversions. From the initial advice to the final stages of securing new freehold titles, we ensure that every step is taken care of professionally and efficiently.

The Conversion Process:

  1. Council Consent: We’ll handle the consent process with the local council for title modifications.
  1. Professional Surveying: An accurate survey will be conducted, crucial for the conversion procedure.
  1. LINZ Approval: With years of experience, our Surveyors will smoothly guide your application through the approval process with Land Information New Zealand (LINZ).
  1. Legal Finishing Touches: Our partnering solicitors will then proceed with the issuance of new titles.

Addressing the Challenges:

We'll ensure that:

  • Essential easements for service access (power, water, etc.) are legally established.
  • Compliance with outdoor living areas and yard requirements.
  • Proper identification and documentation of service connections.

Why Choose Us?

With an unparalleled understanding of local real estate intricacies and a customer-focused approach, our Survey team is dedicated to optimising your property’s potential and ensuring a rewarding outcome.

Contact Us Today!

Are you ready to enhance the value of your property and streamline its ownership structure? Reach out to our expert Survey team to discuss any potential issues, receive advice, and start the process of converting to a freehold title.

Take the Next Step

Drive your property’s future forward. Inquire now about Crosslease Conversions.

Contact Our Planning Team Now - Explore your options and get expert advice.

For enquiries:

  • Call us on one of our local office numbers
  • Submit your query through our online contact form

 

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Frequently Asked Questions

What is a crosslease title and why were they commonly used in the past?

Crosslease titles were a popular way to divide land before the Resource Management Act, allowing developers to avoid formal subdivision consent. They created shared land ownership with 999-year leases over each dwelling, making them a cheaper and faster alternative at the time.

Why do crosslease properties often cause issues for homeowners?

Crosslease titles can be problematic because any change to a building’s footprint, such as extensions, requires a resurvey and the approval of all other co-owners. Exclusive use areas and common areas are often poorly defined, which can lead to disputes and confusion.

How does converting a crosslease to freehold increase property value?

Freehold titles are traditionally more desirable because they provide full ownership, clearer legal rights, and simpler future alterations. This clarity typically boosts market value and makes properties easier to sell.

What steps are involved in converting a crosslease title to freehold?

The process includes securing council consent, completing a professional survey, obtaining approval from Land Information New Zealand (LINZ), and finalising legal documentation with solicitors to issue new, individual freehold titles.

Do crosslease conversions require new easements or legal access arrangements?

Yes. During the conversion, essential easements, such as access to power, water, stormwater, or wastewater, must be properly established to ensure all services are legally and clearly documented for each property.

How can Birch assist with a crosslease conversion project?

Birch’s Survey team provides full end-to-end support, from initial advice and surveys to council consent, documentation, LINZ processing, and legal coordination, making the entire transition to freehold smooth and efficient.