Cross-Lease Consent

On a cross-lease title, all owners share the freehold of the land and lease their individual dwellings from each other. Because of this shared ownership structure, any changes that affect the building footprint — such as extensions, new decks, garages, or carports — require the consent of all co-owners.

This consent requirement is one of the key differences between cross-lease and freehold ownership. Even if your planned changes don't directly affect your neighbours, they must still agree because the changes will alter the flats plan (the registered diagram showing each dwelling's footprint).

Obtaining cross-lease consent can range from a simple conversation with cooperative neighbours to a complex negotiation. Some co-owners may refuse consent, or may require conditions (such as changes to fencing or landscaping). If consent is unreasonably withheld, you may be able to seek a court order, but this is expensive and uncertain.

Before buying a cross-lease property, consider whether you're likely to want to make changes to the building footprint. If you have renovation plans, understand that you'll need all co-owners to agree — and they're under no obligation to do so.

Also check whether previous owners obtained proper consent for any changes they made. Alterations without co-owner consent and an updated flats plan can create a non-complying title, which is expensive to fix and can affect the property's value and insurability.

Review the flats plan (part of the title documents from LINZ) and compare it to the actual building footprint. Your lawyer can advise on whether any changes appear to have been made without updating the plan. If you're planning changes, discuss the consent process with your lawyer before committing to buy.