FAQ's

What is a Cross Lease Title?

A cross lease is a form of property ownership where you own portion (but undivided share) of a freehold title in addition to a lease over your dwelling. This might involve a single site with two or more dwellings and often comprise a row of flats or terraced dwellings.

Are there any extra charges apart from the fixed fee?

There are no extra fees for obtaining your new fee simple titles if each site has access to a power and water supply.

Can I do the conversion to fee simple without the other cross lease owner(s)?

In the event that one or both owners refuse to engage in the conversion procedure, we may request a Division of Property Order from the High Court. A provision in your lease that permits a majority vote to convert to fee simple is typically included when a cross lease comprises three or more apartments. Discuss this option with us.

What are the payment terms for the conversion?

Fees payable in monthly progress claims over the conversion period, payment terms will be set out in the fee proposal.

How do you decide where the new legal boundaries are?

We translate the covenant (cross lease) boundaries marked by location, fence line, or physical feature on the flats plan into legal boundaries specified by bearing and distance, adhering to them precisely. We would only alter this strategy in response to requests from the parties involved or in the case of a clear and compelling reason.

What is the CCTV Report?

The contractor uses a small push camera to prepare this, noting the locations of drainage pipes by marking them with paint spots on the ground, one for wastewater and one for stormwater. Accurately determining the extent of drainage easements is made possible by the information our survey team collects when conducting the topographical features survey.

Can Council refuse the conversion consent?

No, the conversion is an application for a subdivision consent related to a "controlled" activity. For a restricted activity, the council must provide permission, although it may impose servicing requirements.

Is access to the site needed and who will be on site?

One day is needed for the surveyor. Occasionally, we will need an engineer or CCTV, all will need exterior access only.

Am I able to sell my cross-lease property before the conversion is complete?

Yes. We give up any documents related to the cross lease as part of the conversion, resulting in a "clean" title. Other documents, including as covenants and mortgages, must be kept in place.

What is the difference between a cross lease title and a fee simple (freehold) title?

The main difference between cross lease and freehold title lies in the ownership structure of a property and the associated rights. In a cross lease title, multiple parties share ownership of the land and buildings. Each party owns a "leasehold interest" in their specific unit or flat and also holds a "share" of the land in common with other owners. This means that while you have exclusive rights to your specific unit, you collectively own the land with other cross lease owners. Cross lease properties typically come with a lease document outlining usage rights, restrictions, and obligations for all owners.

With a freehold title, you have full and exclusive ownership of both the land and the buildings on it. You don't share ownership with anyone else. This means you have the freedom to make decisions about your property without needing consent from other owners. You also have the flexibility to make alterations, renovations, and modifications to the property without restrictions imposed by cross lease agreements.

What is a unit title?

A unit title refers to a form of property ownership where individuals share common areas such as lifts, driveways, or lobbies in a multi-unit complex. Each unit owner has a separate legal title to their unit, while common areas and facilities are collectively owned by all owners as part of a body corporate. This arrangement allows for independent buying, selling, and mortgaging of units, while shared responsibilities for maintenance and administration are managed collectively through the body corporate.

Should I ask my cross lease partner to split the conversion cost?

Whether to request the other cross lease owner to share the conversion cost equally depends on the specific circumstances, the terms of your agreement, and the nature of your relationship with the other owner.

Our suggestion is that both neighbours contribute equally to the cost, unless one party gains more benefit or is responsible for the defective title. In which case an uneven sharing might be recommended. Typically, in the majority of our conversions, clients evenly split the cost, while in the remaining cases, one party covers the entire expense. It's advisable to have open communication and discuss the cost-sharing arrangement.

How long does the conversion take?

The timeline varies based on factors such as council processing times and the complexity of the conversion. On average, the process typically spans around five to six months depending on council and LINZ processing times.

Is it important to convert all cross lease properties?

No, conversion is not mandatory for all cross lease properties. It's a personal choice based on the desire to simplify ownership and enhance property value.

What happens to the existing lease agreement?

The existing cross-lease leasehold arrangement is typically extinguished upon conversion to freehold title, as individual titles are created.

Will there be any easements?

Depending on the property's layout, some easements might be necessary, such as for shared access or services. These would be clearly defined in the new title documents.