Can You Subdivide a Cross Lease Property? Regulations and Considerations

Can You Subdivide a Cross Lease Property? Regulations and Considerations

Auckland has a large number of cross lease properties. Most of the time, it’s easy to live alongside your neighbours on a cross lease property without any issues. However, you might wonder if you can make any changes to your site. For example, can you subdivide a cross lease property?

This is where things might get confusing. Subdividing a property means that you’re dividing a property into sections for different purposes. If multiple people own the same property, then altering it could be challenging.

can you subdivide a cross lease

What Is A Cross Lease Property?

A cross lease property is a type of property ownership where each owner owns a unit or flat on a property, but they also share ownership of common areas. These common areas could include driveways, walkways and gardens. Even though you might have a lease for your house, the ownership of the entire site is shared among everyone who lives there.

As you can imagine, this can create disputes if anyone wants to change any part of the property. You’ll need permission from your neighbours if you want to make any major renovations or additions to your home and the surrounding space.

How To Subdivide A Cross Lease Property

So, can you subdivide a cross lease property? Luckily, you can with the right planning and approvals, but it’s still a rather complex process.

There are a few things that you should keep in mind if you wish to subdivide your cross lease property:

  • You’ll Need Approval From Everyone. You’re not the only owner of the property, so everyone needs to approve of the change. All owners of the cross lease property must agree to the subdivision for it to happen. This is because subdividing a cross lease property affects the rights of all of the owners, so all of the owners need to have a say.
  • The Subdivision Must Comply With Zoning Regulations. Your new subdivision needs to comply with all of the relevant regulations. This means that the subdivision must be consistent with the zoning of the property and the surrounding area.
  • The Subdivision Must Not Adversely Affect The Rights Of The Other Property Owners. Your subdivision cannot reduce the size of your neighbours’ units or flats or their access to the common areas.
  • The Cost Of Subdividing Can Be Expensive. You will need to factor in the cost of preparing the subdivision plan, submitting the plan to your local council and any other costs before you can subdivide your cross lease property.
  • The Process Can Be Time-Consuming. It can take several months, or even years, to get all of the approvals you need to subdivide your property. Be aware that this process could be long, so have patience and do what you must to ensure the process goes well.
  • The Subdivision May Affect The Value Of Your Property. If you are planning to sell your property after subdividing it, you need to be aware that the value of your property may decrease.
  • The Subdivision Must Be registered with Land Information New Zealand, or LINZ. It would be best if you familiarise yourself with their subdivision registration requirements before you submit an application.

What specific steps can you take to subdivide a cross lease property? Consider these straightforward steps to be successful:

1. Get Approval From All Of The Owners Of The Cross Lease Property. Before you do anything, speak with your neighbours about what you want to do. You can get physical proof of their approval by having all of the owners sign a document that agrees to the change.

2. Check Your Local Zoning Requirements. Check in with your local council to see what the zoning requirements are for your property. Be sure to keep this in mind so that you don’t make any mistakes further in the process.

3. Prepare A Subdivision Plan. This plan should show the proposed subdivision of the property, including the size and location of the new units or flats.

4. Submit The Subdivision Plan For Approval. Before you can subdivide your cross lease property, your plans will need to be officially approved. Your local council will assess the subdivision plan to ensure that it fully complies with all of the relevant regulations.

5. Once You Get Approved, You Can Proceed With The Subdivision. After everyone is in agreement and your plans are officially approved, you can finally continue with your project. This may involve dividing the property into two or more separate titles or may include creating a new cross lease agreement.

Where Can I Go For Help Regarding My Cross Lease Property?

Now that you know if you can subdivide your cross lease property, are you planning to? Don’t worry; you don’t have to do this alone - we at Civix know all about cross lease conversions, and we’ll be happy to help.

Visit our website to learn more about our cross lease services and how we can help you.

If you have any questions for us regarding our services or your situations, you can call us on 09 303-1113. Or, you can reach out to us through our site’s contact page.

Successfully handle your cross lease property with Civix.