By Kay Keam - 2 Sep 2014
Converting a cross lease title to a fee simple title or a unit
title can add value to your property. This is particularly
beneficial where your existing title is defective and needs to be
rectified anyway. By way of example, this could be where you
or a previous owner has carried out alterations to the building so
that the external dimensions of the building no longer match what
is shown on the flats plan. If you are going to spend money
with a surveyor rectifying the flats plan then using that money to
pay for a new fee simple plan may be a better use of your
money.
We can also help you consider alternatives. For example, a
simple fix where there isn't an exclusive use area attached to your
unit is to register a land covenant. This will however need a
plan to be drawn up by a surveyor to show these areas.
Before deciding what to do, it is necessary to work out a budget
for how much it is going to cost. These costs may include
separation of sanitary sewer and waste water (if this has not
already been done), payment of a reserve fund contribution (if not
previously levied at the time of the original cross lease) and fire
rating if the flats are joined by a common wall or are closer than
what is allowable under the District Plan. If there is a
common area driveway then an easement would need to be created
giving access to the flat owners who use the various parts of the
driveway. It is also important to locate services such as power,
water and electricity and document easements for them.
You should also bear in mind that there may be benefits to the
retention of the cross lease titles. In particular, the
requirement for your other cross lease neighbours to obtain your
consent to any structural alterations to their properties. We
can look at other covenants to protect what is important to
you. For example, you might want to register a height
restriction over the property in front of you to protect that
lovely sea view.
There is a little known provision in the Unit Titles Act to
convert cross leases to unit titles. This however requires
that the new unit plan is exactly the same as your current flats
plan.
If you would like to discuss options with your existing cross
lease then please do not hesitate to contact Elise
Markwick.