Cross Lease To Fee Simple Cost

Escape the burden of living under cross-lease conditions by converting your cross-lease title to a fee simple (freehold) title. Contact us today for an estimate of cross-lease to fee simple cost, and let us initiate the process promptly. This conversion will grant you complete control over your property while avoiding potential disputes with neighbours.

Cross Lease To Fee Simple Cost

The estimated cost for the conversion per flat typically ranges from $20,000+GST to $25,000+GST in Auckland. Please note that this is an estimate and not the exact amount charged by Civix. We will provide you with a comprehensive breakdown of our pricing and guide you through the conversion process when you contact us.

We also recommend discussing your conversion plan with your neighbour before reaching out to us.

Detailed Cost Breakdown By Civix - Cross Lease

Converting a cross-lease title to a fee simple title in New Zealand typically involves a range of costs and processes. These costs can vary depending on factors such as the property's location, its specific circumstances, and any legal or professional fees involved.

Here are some of the key costs and considerations associated with converting a cross-lease title to fee simple:

● Land Survey and Plan

● Subdivision Consent Application

● LINZ and RMA Applications

● Legal Fees

● Cost of completing any required physical work

Land Survey and Plan

A land survey is needed to prepare a new survey plan of the property(subdivision scheme plan), delineating individual boundaries and exclusive areas. This document is important for the resource consent application. The cost of a land survey can vary based on the property's size and complexity but the average estimate is between $2,500 - $4000.

Subdivision Consent Application Cost

Depending on local regulations and zoning, you may need to obtain resource consent to convert a cross lease title to freehold. This can involve application fees and other costs associated with complying with local council requirements.

Here’s a breakdown of subdivision resource consent fees according to Auckland Council,

Cross-lease, unit title, boundary adjustment $2000

Approval of rights of way, cancellation of combined property conditions and restrictions, cancellation of limitations on easements, s226 consents, removal of burdensome claims, and other matters unrelated to land use planning in subdivision projects. $1100

LINZ and RMA Application Costs

Once the resource consent is approved from Auckland Council, LINZ and RMA applications are submitted to ensure the accuracy of property ownership records. These applications help safeguard the rights and interests of property owners, neighbouring properties, and the community at large. There are fees associated with both applications.

LINZ requires specific legal documentation, such as a new survey plan and a deed of variation, to be submitted as part of the application process. These documents help establish the new property boundaries and ownership structure. The processing fee charged by LINZ is roughly around $1800.

The Resource Management Act (RMA) in New Zealand governs land use, subdivision, and development activities. When you convert a cross-lease property to fee simple, you may be altering the property's configuration or land use in a way that could potentially impact the surrounding environment or the rights of neighbouring properties.

Depending on the specific changes involved in the conversion, you may need to apply for resource consent under the RMA. Resource consent ensures that your property conversion aligns with local zoning, land use regulations, and environmental considerations.

Legal Fees

You will need a lawyer or solicitor experienced in property law to manage the conversion process in compliance with cross lease legislation. We have a collaboration with Jim Thompson Barrister & Solicitor, a team of highly skilled legal professionals. They have expertise in handling the necessary paperwork for converting your cross lease property to freehold or updating your flats plan.Typically, their fees for these services range between $1,500 and $3,000 + GST.

However any additional costs may apply If your property carries a mortgage because this involves legal procedures to transition your mortgage to a freehold title property. It's advisable to communicate with your lender regarding any associated costs or prerequisites linked to the conversion process.

Other Infrastructure and Services

After subdivision, each new lot requires access to wastewater, stormwater, power, water, and a telecoms connection. If each lot has access to its own water and power supplies, no additional costs will be incurred. However, additional expenses may arise if your water supply crosses through your neighbour's property when the new boundaries are established. These services must be safeguarded through a legal mechanism, typically an easement.

It's worth noting that Auckland Council does not mandate the separate upgrade or separation of stormwater and wastewater services, but the existing services must be in place and reasonable. To date, we have not encountered any conversions that required the private drainage to be separated or upgraded.

Ask Your Cross Lease Partners To Split The Cost

You must discuss the cross lease to freehold title conversion with other cross lease partners. It's essential to establish each party's role in the process and establish a clear understanding of how the expenses related to the subdivision will be distributed. Ultimately, all parties are likely to gain benefits from freehold title, making it sensible to consider an equitable cost-sharing arrangement. In most of our conversion projects, clients opt for an equal cost-sharing approach, while in some cases, one party covers the entire cost.

Contact us today to obtain an accurate estimate of the cost for converting your cross lease to a freehold title.