Cross-Lease

Cross-lease is a uniquely New Zealand form of property ownership, originally developed as a way to subdivide properties without full council approval. In a cross-lease, two or more owners hold an undivided share of the freehold land as tenants in common, and each owner leases their specific dwelling and exclusive-use area from all the other co-owners.

The lease is typically for 999 years at a nominal rent, so in practice it feels similar to freehold ownership. However, the key difference is that a cross-lease title comes with a flats plan — a diagram showing the footprint of each dwelling and any exclusive-use areas.

The flats plan is critical because any building work that changes the footprint of your dwelling (extensions, decks, carports) typically requires consent from all co-owners and an updated flats plan filed with LINZ.

Cross-lease properties require extra due diligence. The flats plan must accurately reflect the current building footprint — if previous owners made alterations without updating the plan, you could inherit a non-complying title that's difficult and expensive to fix.

Always compare the flats plan to the actual building. Check whether any building consents were issued for work not shown on the plan. Understand that future changes to your home will need co-owner consent.

The flats plan is part of the title documents available from LINZ. Your lawyer should compare the plan to the actual building footprint. A surveyor can confirm whether the current structures match the registered plan.

Check the LIM report for any building consents that might indicate changes to the building footprint since the flats plan was last updated.