A cross lease is where two or more parties own the freehold in land, generally as tenants in common, and lease the buildings on the property to one another using reciprocal leases. These buildings and the exclusive use areas around them are shown on a cross lease plan. Although popular back in the 1980s, this form of title has fallen out of favour in modern times.

Many New Zealand properties still fall under a cross lease title, however, and this creates a need for surveying. Because of the shared ownership, most building improvements or alterations will often require the approval of all co-owners beforehand, and an amending survey. It is also possible to convert your title into a conventional freehold.

RMS Surveyors provides both of these services on a regular basis. We have helped many property owners, and taken on a wide range of challenging projects.

Cross Lease Update or Rectification Survey

Cross lease restrictive covenant and lease areas are usually defined by a survey and the building footprints. If the building footprint changes (i.e. additions or alterations are made to the building), then an update or rectification survey is required to update the cross lease plan.

By revising the reciprocal leases, this ensures that each party has the right to occupy and lease their respective buildings. Many co-owners may request an amendment as part of a condition for sale as well, if there is a deficiency in the title.

Cross Lease Conversion to Freehold

Owners have the option of subdividing their property to create conventional freehold titles. A full conversion will require the involvement of all co-owners, the local Council, and the Land Information New Zealand (LINZ). While this may cost more than an amendment, the improved title is often more desirable.

Contact us today and inquire about our services.