What is freehold versus cross-lease or unit title in New Zealand in 2026?

Freehold (fee simple) means you own the land and buildings on the record of title, subject to easements, covenants, and council planning. It is usually the simplest for banks and resale.

Cross-lease is widespread on mid-century Auckland and Wellington sections with two or more dwellings. You own a share of the freehold land with the other owners and a long lease (often 999 years for a nominal rent) over your flat and exclusive areas. Painting the exterior, adding a deck, or changing the footprint can need neighbour consent under the lease. Your lawyer should compare the flats plan to the actual buildings. Alterations missing from the plan can create a defective cross-lease that slows a later sale.

Unit title (sometimes called strata) covers apartments and many townhouses. You own your principal unit and any accessory units such as a carpark, plus a share of common property. You join the body corporate and pay levies: Condominium fees. Read the pre-contract disclosure before you bid in Auckland CBD or Wellington waterfront stock.

Leasehold means you own improvements while someone else owns the land and charges ground rent on reviewable terms. It appears less often than freehold or cross-lease, but remaining term and rent reviews matter for mortgage appetite. Overseas buyers must still clear ownership rules first: Can foreigners buy property.

Ask your lawyer for the record of title, flats plan or unit plan, covenants, and any consent history. Budget LIM and building inspection on top of the price: Property purchase costs. If you are still renting while you learn suburbs, use a normal tenancy rather than guessing title risk from a listing photo: How to rent a home.