The four title types in New Zealand
When you search for property in Hawke's Bay, you will encounter four main types of title. Each has distinct characteristics that affect your ownership experience.
Freehold (Fee Simple)
Most CommonYou own the land and everything on it outright. This is the most straightforward form of ownership and gives you maximum control over your property.
Advantages
- - Full control over land and buildings
- - No shared ownership complications
- - Generally easier to finance
- - No body corporate fees
Watch for
- - Easements affecting access
- - Covenants limiting use
- - Resource consent requirements
Leasehold
You have a long lease of the land and improvements with rent reviews every 7 or 21 years.
Best for: Lower cost entry into the market and often, the opportunity to freehold the Land (i.e. buy out the landlord) later.
Advantages
- - Lower purchase price
- - Access to otherwise unaffordable areas
Significant considerations
- - Ground rent can increase substantially
- - Banks may not lend, or lend less
- - Value decreases as lease shortens
- - Uncertainty at lease end
Cross-Lease
Extra Care NeededYou own a share of the land with others, and you all lease your specific buildings to each other. Common in older subdivisions where developers created multiple dwellings on one title.
Advantages
- - Often more affordable
- - Can be in desirable locations
- - No body corporate fees
Significant risks
- - Need other owners' consent for exterior changes, and in some cases, if you want to let it out
- - Flats plan must match reality
- - Unconsented alterations can create expensive problems
- - Bank caution: some lenders are wary of cross-lease
Important: Cross-leases require careful checking. If previous owners made changes without updating the flats plan (the diagram showing what you lease), you may inherit expensive problems. Read our full cross-lease guide .
Cross-Lease of Leasehold
The lowest/weakest form of ownership but often the cheapest. You lease your building and share leasehold land with other owners.
Advantages
- - Often the cheapest entry option
- - You can often convert it to a freehold cross-lease by buying out the landlord
Key considerations
- - Lease costs: what is the annual ground rent and when is it renewed?
- - Financing: lenders can be cautious about the sum they will lend, if any
- - Title issues as per cross-lease
- - Flats plan accuracy as per cross-lease
Unit Title
Apartments & TownhousesYou own your individual unit outright, plus a share of the common property (driveways, gardens, shared facilities). Governed by a body corporate with its own rules and levies.
Advantages
- - Clear boundaries of ownership
- - Shared maintenance costs
- - Often lower-maintenance living
- - Well-regulated by legislation
Watch for
- - Ongoing body corporate levies
- - Long-term maintenance fund adequacy
- - Body corporate rules may restrict you
- - Less control over shared decisions
Why title type matters
The type of title affects what you can do with your property, your ongoing costs, and your relationship with neighbours.
- Renovations: Cross-lease and unit titles may require consent from other owners
- Body corporate fees: Unit titles come with ongoing levies
- Insurance: Different title types have different insurance requirements
Getting advice
We can explain what your title type means for you and review any restrictions that apply to the property.
Questions about property titles? Call us on 06 835 7394 or email 06 835 7394 .
How we help
We review the title type and explain what it means for you. For unit titles, we check disclosure statements carefully and flag any concerns before you commit.