Cross Lease on freehold land is a form of property ownership and is still a great way to own a home. Max Gunawan explains some of the difference between cross lease and freehold below.
Cross-leases first became popular in the 1960s as an easier way to subdivide. There are still 215,000 cross-leases in New Zealand (over half in Auckland).
Do I still own the land?
A few parties share ownership of the land and get a specific lease over a particular portion of the land. No rent is paid however and the term is usually around a thousand years.
Challenges
Changing the size of the house or adding a garage will only be done if permission is granted by the other owners of the cross lease.
Leasehold?
Do keep in mind that you can get a cross lease on leasehold land as well. Leasehold land is very different to freehold so it pays to get a lawyer to look over the title before entering into any agreement.
