Howdy everyone,
this is our first post on this site so please be gentle[cap].
My question is – what exactly does “Leashold with option to freehold” mean . I suspect it is something to do with native title as it seems to appear in clusters in R Estate agent adds on the net.
Is it as sinister as it sounds , as it rang alarm bells for me .
ThanksAl
Hi Al
welcome to the forum.
leasehold means that you don’t own the land just the building. In NZ usually that means Moari ownership, but not always sometimes its it can be another body such as the port authority in Napier. Freehold means you do own the land.
the problem with leasehold is that you will need to pay one extra bill every year. Locals don’t like the idea of leasehold (except in Napier they seem to accept it).
I’m not sure about the option to buy the land , i’d check the viability of that very carefully !!
personally i’d never buy leasehold. When it come time to sell you will find that there is a smaller pool of buyers prepared to buy leasehold.
One last comment cross lease is also common in NZ this is different to leasehold. Crosslease usually means that you own the land on a percentage basis with others who have a building on the same title of land.
regards westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Al,
I agree with Westan…
I would never buy leasehold land, however I have owned crosslease land in Rotorua, where there was 2 houses on the one title. Both houses shared part of the driveway.
I don’t have any hesitation about owning crosslease land… It is very accepted and common in NZ, however it is best if you don’t share the driveway. Just in case you have one very thoughtless tenant in one house blocking the driveway….. It could cause problems down the track. (or should I say down the driveway)!! [biggrin]
Cheers,
DelHi del
yes good point, i’ve also bought cross lease before and would do it again.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Yeah cross lease seems to be fine as long as ther anre no quarrels over title, leasehold is actually quite common as and can crop up where a private school owns the land and use to own the houses that the teachers stayed in, pletny of examples all over north island towns, I myself steer clear of them, but In London it seems a good 30% of the inner city residential property is leasehold
when the going gets weird the weird turn pro
This story in the NZ media may interest you on the leasehold topic
LEASEHOLDERS ROCKED BY RENT HIKE
News Release Date: 2 February 2005 NZ Time.
Source: Taranaki Daily News
North Taranaki leaseholders face massive rental increasesas rocketing land values force leases up. The news has some people living on leasehold land panicking that they will not be able to afford the increase and will be forced out of their homes. Worst affected are 121 Urenui Domain bach owners, who have New Plymouth District Council (NPDC) property leases that are up for renewal by April 1. Urenui bach owners pay an average $517 a year, but that is set to rise to as much as $7155. Urenui Bach Holders Association chairwoman Julie Mace said she knew there would be an increase, but could not believe by how much. “If they go up to that price, we will want to have some vast improvements, like the roads done – it’s unsealed between the baches,” she said.
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Thanks for the replys guys .
That is pretty much how I figured it would go , but you cant be to careful.
I am just back in OZ after what Steve would call a fact finding mission to NZ . Was my first ever visit , infact it was my firstever time out of Aust . What a culture shock .
Much to my amazement I had an offer accepted on the only property I was interested in , cool .There is one glaring bussiness opportunity that no one seems to have picked up on yet . On my next visit I will be sending over a shipping container full of flyscreens and exhaust fans . drive around selling them out of a truck – make a fortune .[cap]
Al
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