Comments on: What does Freehold, Leashold, Crosslease and Strata Titles Mean to You When Buying Property in New Zealand

By: swiggs

swiggs — Fri, 04 Feb 2011 08:16:35 +0000

Hi Ced,

Thank you very much for putting a very informed definition here.
You have a great depth of knowledge on this matter more than I do, so thank you for that.

Regards

Deon

By: Ced Croft

Ced Croft — Fri, 04 Feb 2011 08:12:41 +0000

Your website definition of freehold is not correct. Freehold does does not mean unencumbered. The word freehold refers to the rights of possession of the land and the time lenght of those rights of possession. Freehold means rights of possession now and for an indefinite time. ie there is no termination of those rights and they can be passed onto an umlimited number of owers for an unlimited time. ” a time in the land without end”. Note that freehold titles can be mortgaged but that does give the mortgagee any rights of possession UNLESS the mortgagor defaults on the terms of the mortgage, and then they can only sell to recover losses. The term leasehold is also about possession but a lease by definition has a specified termiation date. (though it may have rights of renewal). Lease means rights of possession for a specified time. Fee simple is not the same as freehold either – the word FEE refers to the rights to sell and pass onto heirs and simple refers to the ownership rights the state allows you as an individual to hold. The word SIMPLE means you must abide by the law, even on your own land (including the RMA), you are subject to the compulsory aquisition should the state need to take your land for the public good (state must pay compensation). The use of freehold to describe land titles free from debt is a popular misconcepetion.

By: Buying A Section | Swiggs's Corner

Buying A Section | Swiggs's Corner — Tue, 02 Mar 2010 05:17:51 +0000

[...] Residential zoning by-laws determine how many dwellings will be permitted on one site depending on the land size and the dimensions. Generally when a block of land is subdivided it is chopped up and the sections are of their own title. But sometimes you can get a cross leased section. For more information on this have a look at a previous blog post of mine on titles. [...]

By: joseph

joseph — Thu, 11 Jun 2009 23:23:06 +0000

Hi,
i bought a property which is stratum in freehold, my question is, do i need to ask permission or approval from the body corporate if say i wanted to build a deck that is less than 1 meter and is far from the common driveway..

thanks.

By: ayden

ayden — Fri, 13 Mar 2009 02:18:34 +0000

hi there, I am looking into a bodycorp for the block of flats in which i own one, and there are total of six. I am concerned that the other owners may ot ne keen due to costs etc, however the flats need someone to administer them, as they are getting tired and maintenance is becoming expensive. Does anyone know whether this sort of thing is being looked into by the department of housing/unit titles act?

By: NK

NK — Thu, 26 Feb 2009 02:49:42 +0000

HI I see no reply to the question above regarding a unit on a cross lease that could leak. We have this very problem. The unit above us leakes into our rs apartment directly below.The leak comes from their deck.
Our unit is 32 years old and we rent it out.
The tenants are wanting to leave before winter. Scary.The previous owners of both units knew of this leak and has tried repeatedly to repair it.
We are in discussions with the current owner who was aware of the leak when she purchased the property. If anyone can give us any advise as to where we stand leagally an who is responsible for repais we would be very grateful.

By: W.R. Muller

W.R. Muller — Thu, 04 Dec 2008 01:39:27 +0000

Hello, where can I find (download) a consent form to present to our cross lease neighbours for ageement to erect a pergola. (No council permit required).
Regards, W.R.Muller

By: CR

CR — Sat, 22 Nov 2008 04:59:36 +0000

I looked at a flat today which has a ‘cross lease’ title. This particular unit is one of 4 on the ground floor with another 2 flats above it. The agent mentioned that there is no body corporate involved in managing the flats. My question is that can each owner insure his unit independently even though they are all joined and what happens if the unit above you begins to leak and they choose not to repair it properly – with no body corporate in place, there would be no protection for the other owners?
cheers

By: David Leggott

David Leggott — Sat, 18 Oct 2008 23:08:23 +0000

A great article Deon. One thing that you mention about leases is something that is very relevant. You mention “Glasgow” leases, and I’m not sure if its the same that we have here. However the point I want to make is that anyone buying a residential property on leasehold land MUST be aware that leasehold costs can escalate when renewing. I’ve heard in some regions over the last few years we’ve had cases of leasehold rent doubling! What was $2000 a year now is $4500 or $5000 a year! Just pays to check it out really carefully.

By: Deon Swiggs

Deon Swiggs — Fri, 17 Oct 2008 04:06:48 +0000

Yes you will have to pay a ground rent on a lease hold property most likely as the land is owned by the lessee. (much like a landlord) They set the rent by usually a comparison of the land value. But at the end of the day they choose the land rent(lease). The amount will be stipulated in writing and is usually associated with a time frame and what the right of renewal is.

The best advise I can say though is check the lease through with your solicitor where they can give you the legal aspects.

By: Heidi

Heidi — Fri, 17 Oct 2008 03:46:59 +0000

Hi there,

I just want to ask if i am going to buy a leasehold property, i will be required to pay ground rent.

so who sets the ground rent? and how do they determine that? is there any statutory authority for this?

By: Deon Swiggs

Deon Swiggs — Sun, 28 Sep 2008 22:14:05 +0000

hi Mischa,

Sorry for the delayed response. I wanted to just make sure the info I give is accurate.
Now in terms of changing from a unit title to freehold the process is a little complicated, if there is a body corp that will need to be disolved first, then if the land size is within the council regulations then u have to go through them. council cost vary, solicitor fees will be a few grand possibly, and then the surveyer if you need one will be the most.
Likewise going from crosslease to freehold title you need to have a surveyer, meet council specifications and have your solicitor work on the title.
The process can be quite expensive.

My advice is contact your solicitor and the council and they will point you in the right direction. They can give you a more accurate cost and detail you the process.

Although not quite answering your question I hope this helps a little.

Regards

Deon

By: Mischa

Mischa — Fri, 26 Sep 2008 14:31:00 +0000

Hi Deon:

Is it possible for you to give a ballpark figure for the cost of converting a Unit Title to Freehold? This is just a general inquiry to establish the approximate charges this kind of conversion would entail.

Thanks and regards,
Mischa.