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Ever wondered what the term “cross lease” really means—and whether converting to freehold is worth it?
Whether you’re looking to buy, sell, make changes to your property, or convert your cross lease title to freehold, it’s important to understand what this form of property ownership really means — and what your options are.
In my experience, cross lease titles often catch people off guard. They can seem straightforward at first, but the shared ownership structure can complicate even simple plans — like adding a deck or putting up a fence. People often don't realise that in addition to complying with council and building requirements and getting your cross-lease neighbours consent, you need to update the flats plan if you make changes. I’ve seen clients face delays, disagreements, and unexpected costs that would not apply to a freehold title.
A cross lease is a type of property ownership where multiple people own an undivided share of the land and lease the buildings (usually homes or units) from all the other owners. These leases are typically for 999 years and the title for the property includes a document called a flats plan, which outlines the buildings as they existed at the time the title was created.
While this model was popular in the 1970s and 1980s as a way to subdivide land which did not meet the criteria at that time, it’s now generally seen as outdated and restrictive. In fact, many cross lease titles are considered “defective” if the flats plan doesn’t match the current layout of the property — such as when a home has had an extension, deck, or garage added without the plan being updated.
If your title is defective, it can cause problems when it comes time to sell. Buyers (and their lawyers) will pick up on any inconsistencies, and it may affect the bank’s willingness to lend on the property — or lead to price negotiations. In some cases, a defective title could even delay or derail a sale altogether.
The good news is that it’s often possible to convert a cross lease title to freehold. Doing so can:
The process does require some professional input. You’ll typically need:
While it is possible in New Zealand for one lawyer to act for all parties if there are no conflicts of interest, in most cases each party is advised to seek independent legal advice. This helps ensure everyone understands their rights and obligations.
Not necessarily. Cross lease ownership can still suit some homeowners — especially those:
For some, this shared control can be reassuring — offering a sense of oversight and consistency that suits quieter neighbourhoods or close-knit communities.
Some providers offer cross lease conversions at a fixed fee, which can seem appealing for the sake of cost certainty. However, in our experience, this often means clients pay at the higher end of the price range — even when their property doesn’t require that level of work.
We believe a more efficient and fair approach is to have a quick discussion about your situation, gather a few key details, and then provide you with a personalised estimate that reflects the actual scope and complexity of your property.
At McVeagh Fleming, we have a team of experienced property and cross lease experts. We work closely with landowners, planners, surveyors, and councils to guide our clients through the cross lease conversion process. Our approach is practical, personalised, and cost-effective. Whether you're just exploring your options or ready to take the next step, you can find more information and contact details on our Cross lease page,—or reach out to me directly for clear, practical advice.
Ever wondered what the term “cross lease” really means—and whether converting to freehold is worth it?
Whether you’re looking to buy, sell, make changes to your property, or convert your cross lease title to freehold, it’s important to understand what this form of property ownership really means — and what your options are.
In my experience, cross lease titles often catch people off guard. They can seem straightforward at first, but the shared ownership structure can complicate even simple plans — like adding a deck or putting up a fence. People often don't realise that in addition to complying with council and building requirements and getting your cross-lease neighbours consent, you need to update the flats plan if you make changes. I’ve seen clients face delays, disagreements, and unexpected costs that would not apply to a freehold title.
A cross lease is a type of property ownership where multiple people own an undivided share of the land and lease the buildings (usually homes or units) from all the other owners. These leases are typically for 999 years and the title for the property includes a document called a flats plan, which outlines the buildings as they existed at the time the title was created.
While this model was popular in the 1970s and 1980s as a way to subdivide land which did not meet the criteria at that time, it’s now generally seen as outdated and restrictive. In fact, many cross lease titles are considered “defective” if the flats plan doesn’t match the current layout of the property — such as when a home has had an extension, deck, or garage added without the plan being updated.
If your title is defective, it can cause problems when it comes time to sell. Buyers (and their lawyers) will pick up on any inconsistencies, and it may affect the bank’s willingness to lend on the property — or lead to price negotiations. In some cases, a defective title could even delay or derail a sale altogether.
The good news is that it’s often possible to convert a cross lease title to freehold. Doing so can:
The process does require some professional input. You’ll typically need:
While it is possible in New Zealand for one lawyer to act for all parties if there are no conflicts of interest, in most cases each party is advised to seek independent legal advice. This helps ensure everyone understands their rights and obligations.
Not necessarily. Cross lease ownership can still suit some homeowners — especially those:
For some, this shared control can be reassuring — offering a sense of oversight and consistency that suits quieter neighbourhoods or close-knit communities.
Some providers offer cross lease conversions at a fixed fee, which can seem appealing for the sake of cost certainty. However, in our experience, this often means clients pay at the higher end of the price range — even when their property doesn’t require that level of work.
We believe a more efficient and fair approach is to have a quick discussion about your situation, gather a few key details, and then provide you with a personalised estimate that reflects the actual scope and complexity of your property.
At McVeagh Fleming, we have a team of experienced property and cross lease experts. We work closely with landowners, planners, surveyors, and councils to guide our clients through the cross lease conversion process. Our approach is practical, personalised, and cost-effective. Whether you're just exploring your options or ready to take the next step, you can find more information and contact details on our Cross lease page,—or reach out to me directly for clear, practical advice.
