Do you own a cross leased property and wonder what the costs would be to convert it to a free hold title? In this blog we discuss the steps involved in this subdivision type, and provide an estimation of costs for each step of the process. This is an update of our previous blog but please still keep in mind costs do vary for each development depending on site and development specific issues, and the figures in this blog should be used as a guide only.
What is a cross leased title?
Cross lease is a form of property ownership where multiple individuals own an undivided share of land, which they build on, with the land being leased from the other owners (often for a term of 999 years). This could involve a single site with two or more dwellings, you may own the rear dwelling, have exclusive use areas at the rear of the site and share common areas such as site access. Cross leased sites can include standalone house, flats or townhouses. There are many cross-leased properties throughout Auckland, however this form of property ownership is not commonly created anymore.
What are the benefits of converting a cross lease to freehold?
With a cross leased property any additions or alterations you propose to the land, buildings, common areas or new development usually need agreement from all cross-lease owners. Depending on what you propose and your relationship with other cross-lease neighbours you may have difficulty obtaining this approval.
Most additions or alterations, or new development on a cross leased property will also require an update to the Flats Plan and an application to council for the related resource consent. This will add additional time and costs to any development you propose on a cross lease site (for more information on this click here). If you don’t go through the process of obtaining resource consent and updating the Flats Plan, the Record of Title may become defective and affect future sales of your property. A future buyer may not be able to obtain finance if the title is not up to date.
A fee simple site where you have ownership of the full site gives you more flexibility and freedom to undertake additions or alterations to your dwelling or new development. The Auckland Unitary Plan now allows for greater development potential in certain zones. If your fee simple site is located within a zone, such as Residential – Terraced Housing and Apartment Building Zone, Residential – Mixed Housing Urban or Residential – Mixed Housing Suburban your site may have options to construct two or more houses in place of one dwelling. However, this development potential maybe reduced or lost if you are on a cross leased site, where your dwelling may be linked to other dwellings, the permitted development relates to the “site” overall (not just your exclusive use area), infrastructure may be shared and you also need agreement from another party.
A fee simple site can be more desirable to potential buyers due to the greater degree of freedom available for the use and development of the site. A fee simple site can be more sought after in the market and will usually attract higher prices than cross leased sites.
You can find out more about the cross lease to free hold process in our blog here. Converting your cross leased site to a fee simple site requires a subdivision resource consent application in Auckland. You can find out more about the Council aspects of the subdivision process here.
In this blog, we focus more on the costs of this subdivision type.
Consultation with your cross lease neighbours – How will you split the costs?
All of the owners of your site are affected by the conversion of cross lease to fee simple titles and the associated resource consent (subdivision) application. The first step is to talk with the other owners about the benefits of the cross lease to free hold subdivision and determine whether they would be interested in undertaking the conversion with you. It could be useful to share with them some of the blogs or e-guides on our website to help with their understanding.
During discussions you should also be clear on what involvement each party would have in the process and how the costs of the subdivision would be shared. Ultimately all parties are likely to benefit from the conversion of the title to freehold, and it may be appropriate to equally share costs.
What are the costs of the conversion to fee simple titles?
Planner
It is important to discuss your proposal with a planner upfront as planners usually manage the resource consent process for you and can help you identify potential issues, risks and the feasibility of the conversion. You can then make an informed decision to proceed or not. You can also discuss potential lot layouts- for example, how will access, parking, outdoor living and service areas be catered for, where are easements required and who will these be in favour of?
Apart from reflecting how the land is used, you also need to consider what the Auckland Unitary Plan expects and ensure the outcome minimises potential adverse effects. Your Planner will also assess city wide and zone rules and standards to determine whether there are any other reasons for resource consent beyond the subdivision component. Planners will visit your site, liaise with your other specialists, write an Assessment of Environmental Effects (AEE) report, usually prepare the overall resource consent application for lodgement with the Council and liaise with the Council on your behalf after the resource consent application is lodged. Planner’s fees to manage the resource consent process and undertake all of the above tasks will likely be in the order of $5,500 to $6,000+GST, depending on your specific site, its constraints and any other planning infringements present.
Civil Engineer
Assessment from a civil engineer may also be required, in particular to investigate the existing infrastructure on the site (in particular wastewater, stormwater and water supply). Stormwater and wastewater drainage may need to be videoed to ascertain the condition and position of the pipelines. Sometimes services are shared between cross leased units and separation of services may be required. This can add cost to the development, and once more is understood about the services on site, your Civil Engineer will be able to provide an indication of any costs required to separate or upgrade services.
In some cases, vehicle crossing may also need to be upgraded.
The cost for a civil engineer to prepare an infrastructure report for a proposed cross lease to fee simple (of two cross lease sites) to support the resource consent application is approximately $5,000+ GST. This does vary depending on the complexity of the proposal and the number of dwellings involved.
Surveyor
A Surveyor will draft a subdivision plan that shows the proposed boundaries, site areas and any easements which may be required (such as for access or services) to convert a cross-lease site to free hold titles. This document supports the resource consent application. The surveyor costs to prepare a investigate your project and to prepare a subdivision scheme plan in consultation with you and your planner, is approximately $5,000+ GST.
Once the resource consent is approved your surveyor then completes land survey work which includes placement of new boundary pegs, preparation of e-survey plans, and preparing documentation for Land and Information New Zealand (LINZ) to create the new the Records of Title. Your surveyor will usually manage final Council approvals to “sign off” the subdivision consent, liaise with your solicitor and obtained LINZ approval. The cost for surveyors to manage this process is approximately $10,000+ GST.
Council Fees
The council will require a resource consent application deposit fee to process the resource consent application. The application deposit fee for a cross lease to freehold subdivision (on its own) is approximately $5,000 (in Auckland, correct at time of writing). The actual fee in Auckland is likely to be more than this; Auckland Council charges for actual time and costs.
Land Information New Zealand (LINZ)
As noted above your surveyor will prepare documentation to submit to LINZ to allow the new records of title to be issued. The LINZ lodgement fee is approximately $2,500 + GST.
Solicitor
Input from your solicitor will also be required including liaison with your surveyor, property owners and to finalise the necessary legal documentation. Legal fees will vary between firms.
Need more advice on your property?
If you own a cross leased property and are interested in investigating the conversion to fee simple titles, don’t hesitate to get in touch with us at Planning Plus. We can assist with the process along with the management of the resource consent application. You can contact us on hello@planningplus.co.nz or (09) 427 9966.
© Planning Plus Ltd 2026
