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A cross lease is where a number of people share in the ownership of a piece of land (as tenants in common which means they can sell, or pass on their share in their will).

The homes that they build on the land are actually leased from the other land-owners.

The houses are usually flats or townhouses. For example, if you purchase a flat in a

three flat development that is a cross lease, you will become the registered

proprietor of:
1)- An undivided one third share in the land and buildings (as tenant in common in

equal shares) with the other owners of the other two flats, and
2)- A long term lease, from all three of the tenants in common (including you), for your particular flat.

Disadvantages of Cross Leases.

The problem with this type of ownership is:
a)-The rights of the owner depend on the terms of the particular lease, which has usually

been arranged by a developer who built the development but now has no further interest

in it.
b)- The usual term of a cross lease is 999 years, whereas the physical or

economic life of the house will be a lot shorter.
c)- You must comply with the covenants set out in the lease - if you fail to comply,

the other flat owners may be able to compel you to sell your undivided share in

the fee simple title.

d)- You will usually need to get the unanimous support of all the owners of the cross leased homes to make any kind of decisions for example, decisions concerning common spaces such as driveways or car parking areas. If agreement can’t be reached it might involve a lengthy arbitration.
e)- When homes are altered, unless the cross lease and building plans are changed, the original cross lease will not include the alterations without additional surveying and legal costs.

f)- Furthermore, you will need to get the agreement of the other lease-holders before you can do the work. Most cross lease owners believe that their title is as good as an ordinary freehold title without understanding all the implications.

If there are real problems with your home being built on a cross lease title, there is the

option of changing the title to freehold. A freehold title gives the owner exclusive

rights of use and enjoyment of the land, and is the most common form of ownership for

land in any country.
You should see a lawyer about converting the title. Converting from cross lease to

freehold title is very complicated and may be expensive as essentially all the cross leases will need to be converted. Be aware of the need to comply with the requirements of the district

plan (for example, the distance between the houses) and that a new survey plan will

need to be approved by your local council. You will need to get subdivision consent and consent

of all of the other owners.

Unit titles were created (under the Unit Titles Act 1972) to allow people to own an

apartment in a building and to allow for multiple ownership of the common spaces

and facilities, such as driveways and lifts.
A unit title can be bought and sold, or leased or mortgaged. It is made up of

three components:
a)- Ownership in the particular units (which can be the apartment and the car park).
b)- An undivided share in the ownership of the common property.
c)- An undivided share in the ownership of the units if the unit plan is cancelled.

The unit owners own the common property as tenants in common so that when the

unit owner dies, their share does not revert to the other owners but passes on

to someone else, according to the terms of that person’s will. Each owner’s share in

the common property is proportional to their ‘unit entitlement’.
A body corporate arranges the upkeep and insurance for the building, paid for

out of money levied on the owners.