Cross-Lease Consent
Formal agreement from all co-owners on a cross-lease title required before making changes that affect the building footprint or shared areas.
What is a 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.
Why It Matters for Due Diligence
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.
How to Check
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.
Frequently Asked Questions
What if my cross-lease neighbour refuses consent for my renovation?
Without co-owner consent, you generally cannot proceed with changes that affect the building footprint. You can try negotiation, mediation, or as a last resort, a court application — but outcomes are uncertain and the process is costly.
Do I need consent for internal renovations on a cross-lease?
Generally no. Internal changes that don't alter the building footprint don't require co-owner consent. However, you may still need council building consent depending on the scope of work.
Related Terms
Cross-Lease
GlossaryA form of property ownership where multiple owners share the freehold of a single piece of land and lease their individual dwellings from each other.
Freehold
GlossaryThe most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
Unit Title
GlossaryA form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
LIM Report
GlossaryA Land Information Memorandum — an official council report summarising everything the council knows about a property.
Resource Consent
GlossaryPermission from the local council to carry out an activity that affects the environment, required under the Resource Management Act 1991.
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