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Cross lease titles a ticking time bomb, warns lawyer
http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10908594
An Auckland lawyer is warning about dangers with 216,000 cross lease property titles and has called for people's horror stories about the issue.
Joanna Pidgeon, a partner at Pidgeon Law in Auckland, an Auckland District Law Society councillor and member of the society's property law committee, is calling for a law overhaul allowing owners of these titles to be able to convert them to far more desirable, cleaner fee simple titles.
Auckland has more than 100,000 cross lease titles, a form of shared ownership often applying to brick and tile ownership flats or houses, developed around the 1960s in many urban areas, she said.
Pidgeon said owners could face huge fees when they wanted to make changes to houses or units on such land, and adding another level, a deck or making major renovations could create big issues.
She wrote an article for LawNews, warning of the deficiencies of cross leases and said she knew of some dreadful situations.
Before any major building work took place on a cross lease title, owners must get their neighbours' permission.
Although they might know a few facts about the cross lease title when they bought the property, sometimes they forgot about the neighbour permission issue or simply did not know about the restrictions until it was too late, she said.
Sometimes, people had to pay $20,000 or more to a neighbour to get sign-off allowing building alterations to a unit or house - either before or after the building work had taken place - and the owners might also be put to the expense of having to deposit or lodge a new plan for the entire property, she said.
In some cases Pidgeon has handled, neighbours have withheld consent to building changes resulting in a bitter and drawn-out process of negotiation.
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