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  1. #11

    Default

    Thanks for the input.

    My understanding is that it is a cross lease simply for the reason others have mentioned - it was a cheaper option at the time. Each property has sufficient land to warrant an ordinary subdivision today.

    I'm still undecided about this one - perhaps that means it isn't a goer!

  2. #12
    Join Date
    Oct 2007
    Posts
    236

    Default

    If you can get agreement of the other owner and council it may add value to the property if you convert it to true freehold. It is likely that the council will agree (but not absolutely guaranteed until you investigate) to allowing this--usually at minimal cost because they are 'existing' Some councils will have some requirements but usually not onerous because the properties will usually have seperate power, water etc

    Once it becomes true title, its market worth usually increases--this will depend on local market conditions--some markets loath xlease, others readily accept them without question

    Best to check with a local valuer and surveyor to get a feel for gain in value, and likely costs

  3. #13
    Join Date
    Dec 2011
    Posts
    317

    Default

    I bought a cross leased property a couple of years ago and didn't hesitate, I have had no problems and don't expect any.
    I did have to contact the other owner as tenants wanted to instal Telstra Clear for broadband, and would involve digging up driveway, this I had not expected, but managed to reach agreement with owner with Telstra Clear guaranteeing minimum of digging.
    After all that, it was a non event, no digging, as Telstra Clear realised had another way to reach section.

  4. #14
    Join Date
    Jan 2005
    Location
    Turkey
    Posts
    1,699

    Default

    Quote Originally Posted by Eugene View Post
    I did have to contact the other owner as tenants wanted to instal Telstra Clear for broadband, and would involve digging up driveway...
    Did the tenants pay for this?

  5. #15
    Join Date
    Dec 2011
    Posts
    317

    Default

    Yes the tenants paid, it didn't cost much in the end, but tenants were happy to pay even when involved digging up driveway. They always had the option of using Telecom so fair that they paid.

  6. #16
    Join Date
    Apr 2011
    Posts
    337

    Default

    Important things are said, the deal breaker might be the cross lease terms and conditions, however I prefer cross lease investment properties because of lower rates, less land to deal with and “control” dealing with neighbours. On cross lease properties trees and pets are not a problem. Over the time certainly the option to buy the other party is a prospect, too.

  7. #17
    Join Date
    Nov 2007
    Location
    north shore
    Posts
    172

    Default

    Would anyone know the answer to this one: If you have a cross lease property divided between 2 and its big enough to change to fee simple, but it is off a shared driveway with 9 other houses can you still change it to fee simple?

  8. #18
    Join Date
    Dec 2010
    Location
    Auckland for work, Counties Manukau for home
    Posts
    1,124

    Default

    Should be able to. I'd need to see the title first, but the odds are that it is the underlying freehold that has the interest in the shared driveway, whether that be by easement or an undivided share in the driveway lot. Since you're just reverting from cross-lease to the underlying freehold, there is a good chance all would be fine.

  9. #19
    Join Date
    Nov 2007
    Location
    north shore
    Posts
    172

    Default

    Thanks, is it worth changing from a cross-lease, I'm sure North Shore City or now Auckland City has a host of charges to make it happen!!

  10. #20

    Default

    IMO cross lease is all right for buy & hold as the price tends to be lower comparing to freehold, therefore better rental yield. Not so good for property trading as it's harder to sell.

    Converting from crosslease to freehold takes some time and money which is again not so much of a problem when selling after a long enough period of holding. Quite a blocker for a fast moving trading stock though.

    In your case, if it ticks all the other boxes, I wouldn't worry.


 

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