Why It's Worth Considering Converting from Cross Lease to Freehold
October 11, 2023Category: Planning, Surveying,
If you own a property with a cross lease title, you may have considered the benefits of converting it to a freehold title. Cross leases were a common form of ownership which was a cheaper alternative to subdividing but there are compelling reasons to consider the conversion.
In this blog post, we will explore the benefits of converting your property from a cross lease to freehold and why it might be a smart move for your investment and peace of mind.
Clear Ownership and Control:
One of the primary advantages of converting to a freehold title is gaining clear ownership and control over your property. With a cross lease, you technically own a leasehold interest in the land, sharing it with other cross lease holders. By converting to freehold, you become the sole owner, eliminating the need for shared decision-making and potential conflicts that can arise in cross lease arrangements.
Increased Marketability and Value:
Freehold properties generally enjoy higher marketability and value compared to cross lease properties. Many homebuyers prefer the simplicity and independence of owning the land outright. Converting to a freehold title can enhance the desirability of your property, attracting a broader pool of potential buyers and potentially increasing its market value.
Freedom for Home Improvements:
Cross lease arrangements often require obtaining consent from other cross lease holders for significant home improvements or renovations. Converting to a freehold title frees you from this constraint, giving you the freedom to make improvements and modifications to your property without seeking permission from others. This increased flexibility allows you to personalize and enhance your home according to your preferences and needs.
When an extension is made to your property this requires your cross lease plan to be updated to reflect the new footprint. If this update is not undertaken then the title is consider defective. As a result this may make your property more difficult to sale as banks often will not provide finance or will put restrictions on a defective title
Future-proofing your Investment:
As the property market evolves, cross lease properties may become less desirable or face challenges due to changing regulations or buyer preferences. Converting to freehold can future-proof your investment, ensuring its long-term attractiveness and marketability. Freehold properties tend to be more resilient in fluctuating market conditions and provide greater stability for your investment.
While cross lease properties offer some benefits, converting to a freehold title presents numerous advantages, including clear ownership, increased marketability, freedom for home improvements, avoidance of lease renewals, simplified financing and insurance, and future-proofing your investment. Converting from cross lease to freehold provides greater control, peace of mind, and potentially higher property value. Before making any decisions, consult with legal professionals and consider the specific circumstances of your property and local regulations to make an informed choice that aligns with your goals and preferences.
Contact us on 09 869 4585 or email us at email@example.com if you would like to discuss the benefits of converting your property from cross lease to freehold.