Christchurch Cross Lease to Freehold Conversion: Unlocking Potential

Cross lease titles were once a popular option for urban intensification in New Zealand. As the ownership of a property changes, or modification are made to a property, the limitations of cross leases are exposed: shared ownership requiring consent from both parties, costly updates to redocument the cross lease title, and obstacles to sale of the property.

In this case, the demolition of one of the properties triggered an immediate defect to the title. But even without the rebuild as a catalyst, the site, and both properties, were nearing a natural decision point. Each property had previously undertaken redocumentation with a cross lease update due to earlier building modifications. The existing title structure was no longer fit for purpose.

The site had a few challenges including managing utility infrastructure. As is common with cross lease titles, there was only one water pipe and water meter shared between both dwellings. A Council-owned stormwater pipe ran underneath the site and was only partly protected by registered easement. Any resource consent application to convert from cross lease to fee-simple titles would invite Council to impose conditions of consent that needed to be considered carefully in advance of proceeding.

Eliot Sinclair handled every stage of the conversion, from feasibility advice to final survey and title creation. The team began by completing an assessment of likely issues that would need to be addressed during the conversion process including anticipated Council Conditions of consent together with a cost estimate. Once the terms for cost sharing were agreed the team proceeded with a full site survey and used ground penetrating radar (GPR) to locate all underground services, ensuring the new titles, with proposed easements as required, accounted for them.

This information informed a bespoke strategy for addressing non-standard easement clauses. These allowed for cooperation between the property owners to relocate the services at any later date, maximising the future development potential of the neighbouring site. This forward-thinking approach helped futureproof the utility servicing arrangement for both parties.

New water infrastructure was installed, including a water lateral, and a second meter. Old shared sections of water reticulation were cut and sealed which then gave each property its own independent water supply, aligning with Council By-Law standards. The existing council stormwater infrastructure was accurately surveyed and protected through registered easements, ensuring compliance with Christchurch City Council requirements. Eliot Sinclair advocated that the costs of preparing and registering the Council stormwater easements should be a Council cost. Through our existing relationships with Council and our understanding of Council requirements, this request was accepted by the Council, saving our clients further costs associated with the compliance with infrastructure related conditions of subdivision.

Thanks to early planning, detailed site investigation, careful consideration with the nominated solicitor and clear communication with both landowners, the project ran smoothly and achieved the goal of creating two fully independent freehold titles with future development potential.

A freehold title eliminates shared ownership complexities, improves marketability and enables easier redevelopment. Eliot Sinclair’s experienced surveyors guide you through every step: from initial consultation and site survey to title creation and council liaison. We make the complex simple—so you can focus on what’s next.

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