June 24, 2025
Why Convert from Cross-Lease to Freehold?
If you own a cross-lease property, you technically don’t own the land outright—you share ownership with other leaseholders. This can cause legal headaches, restrictions on renovations, and even lower resale value.
Upgrading to freehold (fee simple) gives you:
✔ Full ownership of your land
✔ No more consent requirements from neighbours for changes
✔ Higher property value (buyers prefer freehold!)
✔ No lease renewal fees or ground rent
But the process can seem complicated and stressful—unless you know the right steps.
The Stress-Free 6-Step Process to Convert Your Cross-Lease to Freehold
Neighbour Agreements
All co-owners on the cross‑lease must agree in writing to proceed—nobody can be left behind.
Initial Investigations
Engage professionals (surveyor, planner, engineer) to assess the site—checking boundaries, shared services, drainage, driveways, and any title defects.
Securing Necessary Consents
Prepare and lodge a subdivision/resource consent application under the Resource Management Act. The council may require infrastructure upgrades like separate water meters or sewer lines
Detailed Cadastral Surveys
A licensed cadastral surveyor prepares a subdivision or scheme plan, places boundary pegs, and completes Land Transfer surveys. This supports your council application and forms the basis for new titles.
Compliance with Council Certifications
After consent is granted, you must complete required physical works (e.g., updated services). Once these are signed off, request Council s223 and s224C certification to proceed.
Issuance of New Titles
Survey plans and legal documents are lodged with Land Information New Zealand (LINZ). Once approved, LINZ issues new fee‑simple titles, with cross‑lease titles formally revoked.
Why Convert?
Converting to freehold gives you full control over your home and land—no neighbour approvals required. It also often increases your property’s value and eliminates “defective” title issues that can complicate selling or refinancing.
How Much Does It Cost?
- Scheme Plan Preparation: This includes mapping the site, assessing building coverage and landscaping, and designing the proposed boundaries and easements.
- Land Transfer Survey: This involves marking the new boundaries, preparing documents for council certification and LINZ approval.
- LINZ Lodgement Fee: A fee is charged by Land Information New Zealand (LINZ) for processing the new title.
- Surveyor Management: The surveyor will manage the final council approvals and liaise with the legal team and LINZ.
- Legal Advice and Documentation: Lawyers will provide advice on the process, prepare the necessary legal documentation, and liaise with other parties involved.
- Liaison with other Owners: Legal fees can vary depending on the complexity of the legal aspects and the number of parties involved.
- Resource Consent Application: This is a fee charged by the local council for processing the subdivision consent required for the conversion.
- Other Council Fees: There may be other fees associated with the process, such as for processing the final documentation and obtaining necessary approvals.
- Estimated Council Fees: Application deposit for cross-lease subdivision
Total: ~ $19,500 + GST (but your property value could jump 10-20%)
Is It Worth It? Absolutely!
✅ No more neighbour vetoes on renovations
✅ Easier to sell (freehold = higher demand)
✅ No lease renewal risks
✅ Increased equity & borrowing power
Need help navigating this process? Contact 3C Homes—we partner with surveyors, planners, and lawyers to make your conversion smooth and stress-free.