Cross lease properties are a unique form of land ownership where multiple people jointly own the land, and each leases their individual dwelling – often for terms as long as 999 years. Commonly used from the 1950s to the early 1990s, cross leases offered developers a faster and cheaper alternative to traditional subdivision. Although no longer popular for new developments, they remain a valid and common ownership type across New Zealand.
How Cross Leases Work
Under a cross lease, owners share the freehold land but have exclusive rights to their own flat or dwelling. A cross lease plan shows building locations and often defines exclusive-use areas and shared spaces, like driveways.
Your rights and responsibilities are set out in the Memorandum of Lease, which is legally binding and may include requirements around:
– Alterations
– Maintenance
– Insurance
– Dispute resolution
Pros and Cons
Advantages
– Shared control over development
– Clearly defined exclusive and common areas
– Lease covenants provide clarity
– Disputes typically go through arbitration first
Disadvantages
– Structural changes require written approval from all co-owners
– Lack of consent can force removal of unapproved work
– Privacy or access issues if exclusive areas aren’t clearly defined
– Outdated plans can cause delays at sale time
Updating a Cross Lease Plan
If you make alterations or build extensions, the cross lease plan must be updated; otherwise, your title may be considered defective, creating issues when you sell. Even minor structures, like pergolas or small buildings under 30 m² may need to appear on the plan.
Updating a cross lease plan typically involves:
– Surveying the building footprint
– A subdivision application to Council
– Council approval and compliance checks
– Lodgement with LINZ
– Sign-off from all owners
This process can take six months or more, so it’s best not to leave it until sale time.
Why Professional Advice Matters
– Understanding your rights and obligations under a cross lease is essential. Early advice can help you:
– Understand the process
– Plan for costs and timeframes
– Avoid disputes and delays
Written by:
Gayani Chandrasekera – Planner, Cheal Taupō
Catriona Eagles – Technical Lead Planning, Cheal Taupō
Frequently Asked Questions
Do I need consent from all owners to renovate?
Most structural changes do require written approval from every co-owner.
What happens if I don’t update the cross lease plan?
Your Record of Title may become defective, potentially causing delays or issues when selling.
How long does a Cross Lease update take?
Plan updates can take six months or longer, depending on Council processing times and owner sign-off.
Images sourced from: GRIP