Changing Cross lease to Fee simple - 1 owner

[jamesnz]

Hi There

There are 2 properties on sale which are cross lease to each other in Wellington.

These are the only 2 properties having 50% share each in the land.

if I buy both the properties, can I convert them to fee simple without going through a lengthy legal process as I would be the owner of both the properties.

Thanks for advising

[Shalodge]

The short answer is no.

[Bobsyouruncle]

In Auckland the answer is yes it's easy. Not sure why Welly is hard but shalodge would know.

[Shalodge]

I meant that owning both properties doesn't really make the process any easier but as BYU says its not that hard anyway. You will save yourself the usual haggling over who gets what and who pays. A surveyor can do most of it for you but it really depends on the site and not every cross lease can be subdivided.

[Bobsyouruncle]

It makes in MUCH easier owning both. Took 12 grand and minimal paperwork in Auckland thanks solely to owning both.

[ivanp]

It also helps to have good relations with cross-lease neighbour. We have converted a two-share cross-lease with my neighbour into freeholds, that was an easy process and it took about the same money (between two of us) as mentioned above. There was no need to move any connections in our case as everything was done properly from the beginning. So it was just paperwork between surveyors, council and lawyers.

[Wayne]

And that is one of the keys.
Often the cost is higher if the services need to be split.
It is more than just drawing a line on the plan and registering it.

[Bobsyouruncle]

Actually often it is not any more. Even if it is the added value outweighs the cost, in Auckland anyway. An interesting new opportunity in this area is teh ability now in many cases to subdivide an MDU off to its own title. I have one in the works. Adds a lot fo equity and doubles your exit strategies

[Ivan McIntosh]

Hi There

There are 2 properties on sale which are cross lease to each other in Wellington.

These are the only 2 properties having 50% share each in the land.

if I buy both the properties, can I convert them to fee simple without going through a lengthy legal process as I would be the owner of both the properties.

Thanks for advising

It's the same resource consent and legal process, but less hassle in terms of obtaining council approval and you will save money not having two sets of consultants/lawyers (one set for each owner) and no haggling over where the boundaries and easements get drawn with the other owner.

[Nick G]

Ask your lawyer to check this as part of your DD after getting them under contract.

[Orkibi]

If you own both properties it's relatively easy. As mentioned above, the council will most likely want you to upgrade and separate the services. This could cost in access of 15k.

If you pm me I will send you a link to an article about this exact thing. Sorry it will probably be deleted if I posted here as its on the nz property genie website which I run.

[donna]

Just thinking aloud - can you fee simple units that are currently on a cross lease? Or do the properties have to be standalone etc?

cheers,

Donna

[Orkibi]

Yes you can, cross lease is 1960-1970s thing.
You will need to seperate the services in most cases. And creat fee simple with party wall easement. maybe even fire rate the walls if not to current standard.

Sayimg that, cross lease is not to bad if you own the block (I own one) as it can still valued seperate and sold seperate. And usually they have info on the allocated yards " excesory part of" in the cross lease doc. Ie title.

Pm me if you want to watch a video about how I added value to a block of flats by doing that.

[Bobsyouruncle]

I fee simple'd a block of 12 flats in Rotorua, was 2 weeks and 12 grand and most of that was to fire rate the adjoining walls and paint parking strips in the courtyard.

[Orkibi]

fee simple'd a block of 12 flats in Rotorua, was 2 weeks and 12 grand

. We wish it would be that simple in Auckland!

some councils are less strict, I heard in Rotorua aubdevisions cost half of the cost of Auckland.