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Cross leases that're also leasehold?
Hi guys,
I'm moving back to Nelson, and instead of getting rid of my tenants (which are churning out pretty good rental income) - I'm looking at buying a smaller property to live in.
I'm pretty new properties(only having bought my other property about 2 years ago), and have pretty much no experience with cross leases or leaseholds (other ones a freehold). One of the properties I looked was quite funky - it's Leasehold with the term of 999 years (with no ground rent or anything) - and has two standalone properties in 1000 sqms (only one's for sale) - so in a way it's a cross lease as well i guess?
In general I'm super confused by it, the agent was saying it was more of a cross lease unlike a leasehold apartment/commercial, but I'm trying to figure out if this whole thing is dodgy or is that actually normal? Also how does the value of the property go up as technically it's still 'leased' to me instead of me being the freehold title holder. Would you suggest talk to the lawyers and do the due diligence or stay miles away?
Any advice is greatly appreciated!!
I'm moving back to Nelson, and instead of getting rid of my tenants (which are churning out pretty good rental income) - I'm looking at buying a smaller property to live in.
I'm pretty new properties(only having bought my other property about 2 years ago), and have pretty much no experience with cross leases or leaseholds (other ones a freehold). One of the properties I looked was quite funky - it's Leasehold with the term of 999 years (with no ground rent or anything) - and has two standalone properties in 1000 sqms (only one's for sale) - so in a way it's a cross lease as well i guess?
In general I'm super confused by it, the agent was saying it was more of a cross lease unlike a leasehold apartment/commercial, but I'm trying to figure out if this whole thing is dodgy or is that actually normal? Also how does the value of the property go up as technically it's still 'leased' to me instead of me being the freehold title holder. Would you suggest talk to the lawyers and do the due diligence or stay miles away?
Any advice is greatly appreciated!!
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