So what's the difference between a cross lease title and a leasehold title?

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Freehold (or fee simple)

Translated as "free from hold" meaning that you own the building and the land it stands on - outright. It allows owners to make changes to their land and homes without the consent of neighbours - without needing to change the title (so long as the changes comply with Council regulations and the Resource Management Act).

Cross lease

You own two interests in the property:

A share of the freehold title in common with the other cross lease holders; and
A leasehold interest in the particular area and building that you occupy.

Typically, each person has an exclusive use area of their garden to the exclusion of all the other owners.

These titles usually have a common portion of the driveway.

Neighbours' consent must be granted (along with council approval) if you want to add on or up to your dwelling.

Leasehold

There is a misconception out there that cross lease titles are lease hold.

A lease hold title is when someone else owns the land, you just purchase an exclusive right to possess the land and the buildings on it for a specific period of time.

Shannon CorbettComment