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Subdividing your
property.
Unlock the value sitting in your land. Whether you want to build, sell, or restructure ownership, understanding the process is essential.
Why subdivide?
Unlock land value
Create a separate title for part of your property to sell while retaining the rest. Common with larger residential sections.
Build a second dwelling
Create a separate title for a minor dwelling, granny flat, or rental that can be sold independently in the future.
Family arrangements
Give children a section to build on, or create separate titles for estate planning purposes.
Property development
Create multiple lots for sale - from splitting one section into two through to large-scale developments.
Cross lease to freehold conversion
Many older cross lease properties can be converted to fee simple freehold titles through subdivision. This removes the complications of shared ownership and can increase property value.
Types of subdivision.
Fee simple (freehold) subdivision
The most common and straightforward type. Each new lot becomes a completely separate property with its own title. The new owner has full control with no shared obligations.
Recommended for mostUnit title subdivision
Used primarily for apartments, townhouses, and developments with shared facilities. Each unit has its own title, but there are common areas owned collectively through a body corporate. Creates ongoing shared obligations.
Cross lease (largely historical)
Popular from the 1960s to 1980s. Each owner holds a share of the underlying land plus a lease of their dwelling. New cross leases are rarely created today because fee simple is cleaner. Many existing cross lease properties remain.
The subdivision process.
A typical fee simple subdivision involves these stages.
Feasibility assessment
Review district plan rules, minimum lot sizes, access requirements. A planning consultant or surveyor provides initial assessment.
Survey and scheme plan
Licensed surveyor prepares scheme plan showing proposed boundaries, access, and service connections.
Resource consent
Application to council including scheme plan, assessment of environmental effects, and information about services and access.
Engineering and services
Install water, wastewater, stormwater, power, and telecommunications connections. Engineer designs, contractors carry out works.
Survey completion
Surveyor completes final survey and prepares survey plan for LINZ. This precisely defines the new boundaries.
Section 224(c) certificate
Council confirms all consent conditions are satisfied. Required before new titles can be created.
New titles issued
Your lawyer prepares and lodges documentation with LINZ to create new titles. Includes survey plan, easements, and application. LINZ processes and issues new titles.
Realistic timeline
A straightforward two-lot subdivision usually takes 6 to 12 months. More complex subdivisions, those requiring notified consent, or those with significant engineering works can take 12 to 18 months or longer. Plan for the longer timeframe.
Who you will need
A typical two-lot residential subdivision in Hawke's Bay.
Surveyor
Scheme plan, survey, and lodgement with LINZ
Planning consultant
Resource consent application and council liaison
Engineer
Design and supervision for services, access, earthworks
Contractors
Physical works including service connections
Lawyer
Easements, title creation, and registration
Development contributions
Council development contributions can be a significant cost and vary considerably between councils and zones. Napier, Hastings, and Central Hawke's Bay each have different contribution policies. Check with your council early.
Hawke's Bay councils.
Each council has different rules. What is permitted in one area may require consent or be prohibited in another.
Napier City Council
Generally has smaller minimum lot sizes in residential zones. Development contributions apply to new lots. Strong focus on stormwater management given the flat topography.
Hastings District Council
Covers a large area from urban Hastings and Havelock North to rural and coastal areas. Rules vary significantly between zones. Some areas have specific structure plans that shape subdivision patterns.
Central Hawke's Bay District Council
More rural focus with larger minimum lot sizes in many areas. Generally lower development contributions but fewer reticulated services mean more on-site infrastructure requirements.
Post-Cyclone Gabrielle
The 2023 cyclone has affected subdivision in some areas, with new hazard information being incorporated into district plans. Properties in flood-affected areas may face additional scrutiny or restrictions.
Key Takeaways
Fee simple subdivision is the most straightforward option, creating separate freehold titles with no shared obligations
The process usually takes 6 to 18 months and involves surveyors, planners, engineers, council, and lawyers
Costs vary significantly depending on site conditions, council requirements, and the extent of physical works needed
District plan rules vary between Napier, Hastings, and Central Hawke's Bay - check your specific council's requirements early
Getting professional advice early can identify issues before you commit significant time and money to the process
Related Reading
Understanding Easements, Caveats and Covenants
Easements, caveats and covenants affect what you can do with your property. Understand these common title restrictions before buying or selling.
Property Title Considerations When Buying
Property titles reveal ownership, rights and restrictions on land. Learn what to check in a title search before buying property.