cross lease pros and cons?

[klauster]

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.

[north shore]

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?

[Ivan McIntosh]

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.

[north shore]

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!!

[PatMat]

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.

[Ivan McIntosh]

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!!

Don't know...we need a valuer to come on board to help us with that one, or someone who has done it themselves in the Auckland region reasonably recently. I suspect it is worth it in most cases, but that's just my intuition.