Cross lease to free hold property conversion

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deepteshagrawal

2 posts

Wannabe Geek

#289252 22-Aug-2021 21:06

Hey guys,

When we convert Cross lease property into Free hold property, then what happens with the "common area" (that common area is a driveway for second unit)? Does that common area assigned to second unit as that is theirs driveway or is it still common area and we can use together when it comes to driveway?

Thanks.

wellygary

8813 posts

Uber Geek
+1 received by user: 5299

#2765123 22-Aug-2021 21:36

You can either assign it to one of the properties with a right of use for the other, or traditionally it gets split down the middle with a easement use right of the other section assigned to both properties

Goosey

3016 posts

Uber Geek
+1 received by user: 871

Subscriber

#2765178 23-Aug-2021 07:12

Where abouts in the country are you located?

Is there any material benefit to invest $$$ in re categorizing the property?

- In Auckland, theres cross lease a plenty.... and it doesn't affect re-sale values (unless theres some weird nuances of course, e.g. badly recorded boundaries, easements etc).

deepteshagrawal

2 posts

Wannabe Geek

#2769386 31-Aug-2021 15:37

Goosey:

Where abouts in the country are you located?

Is there any material benefit to invest $$$ in re categorizing the property?

- In Auckland, theres cross lease a plenty.... and it doesn't affect re-sale values (unless theres some weird nuances of course, e.g. badly recorded boundaries, easements etc).

So, it means either it will still be Common Area for both the parties or the Back property can own it with the right of use for the first, if they want.