A cross-lease title simply isn’t as good a title as a fee-simple title, because your neighbour is a co-owner of your land, and you need your neighbour’s permission for things that a fee-simple owner wouldn’t.
For example, any alterations to the property – even something as simple as changing a window to a French door – could require your neighbour’s consent. If your neighbour refuses to agree and you go ahead, you may be required to take your alterations down (worst case scenario).
Cross-lease properties are often the subject of neighbour disputes, and the legal process involved in resolving any dispute is not easy and can be very expensive. There is historically a value discount applied to cross-lease properties – a fee-simple property is frequently worth more, and is easier to sell. But there is also a greater benefit than just money – the ability to make your home the way you want it, without needing your neighbour’s consent and without the ongoing costs of needing to update the flats plan on your title after each alteration.
Get total ownership of your home with a fee-simple title. The process to convert can take time. There are various processes involved including checks of your onsite servicing, surveying work, a full subdivision application to council and legal work to obtain your new titles.
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T: 0800 953 273, www.goodtitle.co.nz
Changing from cross -lease to fee-simple
