Top 5 Myths About Cross Lease Conversions – And What You Really Need to Know
1. “It’s too expensive to convert my cross lease.”
Reality: Converting to freehold is more affordable than most people think – and it often adds more value than it costs.
Depending on your property and how many owners are involved, the cost typically ranges from $15,000 to $20,000 per lot, including survey, legal, and Council fees. In many cases, this cost is split between owners. According to Barfoot & Thompson and other major agencies, a freehold title can add $40,000–$100,000 or more to the value of a property, depending on location and condition.
2. “I’ll need to upgrade the driveway or drainage to convert.”
Reality: In almost all cases, Council does not require you to upgrade driveways or drainage for a cross lease conversion.
The conversion is about changing the legal title – not the physical features of the site. Council assesses what is already in place and, so long as there are no major issues, accepts the existing access and infrastructure. We have processed many conversions and almost none have needed physical upgrades.
3. “My neighbor won’t agree, so there’s no point trying.”
Reality: While you do need agreement from all cross lease owners, many people are open to it once they understand the benefits.
If your neighbour is unsure, we can provide clear information for you to pass on or talk to them directly. Often, neighbours are unaware of how cross lease limits their options (like renovations, extensions, or even selling). We’ve found that once people understand the value increase, they’re more willing to cooperate.
4. “Cross lease is basically the same as freehold.”
Reality: Cross lease has more legal complications and restrictions than freehold.
You and the other cross lease owners legally share ownership of the land, and any changes to your property – including alterations or building works – typically require their consent. In contrast, freehold titles give you full ownership and control of your land and building area. Most banks, lawyers, and buyers prefer freehold because it’s simpler, clearer, and carries fewer risks.
5. “Converting doesn’t really add value to the property.”
Reality: Freehold titles are in high demand – and many real estate agents report quicker sales and better offers once a conversion is done.
Buyers are often wary of cross lease complications. A freehold title gives them peace of mind. Real estate agents consistently tell us that a converted title broadens the buyer pool and gives vendors an edge in competitive markets.
Final Thoughts
Cross lease conversions aren’t as complicated or costly as you might think. More importantly, they can significantly improve your property's marketability and long-term value. If you're unsure where to start, feel free to get in touch – we’re happy to review your property and give you straightforward advice with no obligation.
Want to learn more or request a quote?
Visit www.convertmycrosslease.co.nz, email us at bruce@convertmycrosslease.co.nz, or speak directly with one of our expert consultants on 020 4072 4387.
