Cross lease

Understanding cross lease properties — what they mean for you, and how we can help you convert to freehold with confidence.

Cross lease

Cross leases are a common but often misunderstood form of property ownership in New Zealand. If you’re looking to buy, sell, renovate, or convert a cross lease title, our property team at McVeagh Fleming can help.

What is a Cross Lease?

A cross lease is a type of property ownership where multiple people own an undivided share in the land, and each holds a lease (typically for 999 years) for the flat or unit they occupy. The title is registered with a Flats Plan that defines the footprint of each dwelling.

While cross lease titles can work well, they can also create complications — especially when it comes to making alterations to your home, selling the property, or securing finance. Disputes can arise if changes are made without unanimous consent from the other owners. That’s why many property owners consider converting to freehold (fee simple) title.

Why Convert to Freehold?

Converting a cross lease to a freehold title can offer several benefits:

‍Increased property value
Simplified ownership and decision-making
Greater freedom to renovate or develop
Easier to sell or refinance‍

It’s a smart long-term investment — and we can help guide you through the process.

How we can help

Our experienced property lawyers have helped many clients across Auckland and beyond successfully convert their cross lease properties. We’ll:

Review your title and identify any red flags or legal constraints
Work with you to understand your goals and timeline
Liaise with your neighbours and help draft required agreements
Coordinate with surveyors, valuers, and other professionals
Manage the legal process and documentation through to title registration

Whether you’re just exploring your options or ready to begin, we’re happy to talk through what’s involved.

What is the cost?

Some companies offer cross lease conversions at a fixed fee, which can seem appealing as it gives cost certainty. However, in our experience, this often means you're paying at the higher end of the price range — whether your property needs it or not. Most cross lease conversions typically fall somewhere between $5,000 and $20,000, depending on the complexity and what’s involved.

At McVeagh Fleming, we take a tailored approach. With decades of experience and strong industry relationships, we’re able to deliver results that are both efficient and cost-effective for your specific situation.

What is a defective cross lease title?

If the buildings on your property don’t exactly match what’s shown on the flats plan, your cross lease title is likely defective.

This can cause problems — particularly when it comes time to sell.

A buyer’s lawyer will carefully review the title and compare the flats plan with what’s physically on the property. If there have been unrecorded changes — like a deck, extension, or sleepout — they’ll likely spot it. Sometimes this happens via aerial imagery, other times it’s flagged by a surveyor.

Once identified, a defective title can raise two main concerns:

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It may reduce buyer confidence — lenders and insurers may hesitate to get involved, making the property harder to finance or insure
It may reduce your sale price — a buyer might use the defect to negotiate a discount, or walk away altogether

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The good news? You can resolve the issue by updating the flats plan — a process that typically involves a land surveyor, agreement from all cross-lease owners, and legal support to update the title. While it takes a few months, it’s often well worth it to preserve the value and marketability of your property.

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