Two houses can look identical but be owned in very different ways. The ownership type, shown on the title, affects what you actually own, what you can do with the property, and what costs and rules come with it. Before buying, knowing whether a property is freehold, cross-lease, unit title, or leasehold is essential.
| Type | In Short |
|---|---|
| Freehold (fee simple) | You own the land and building outright |
| Cross-lease | Shared land ownership with a lease of your part |
| Unit title | Own your unit, share common areas via a body corporate |
| Leasehold | You lease the land and pay ground rent |
The title type can change your ongoing costs, your freedom to renovate, your ability to get insurance and finance easily, and the resale appeal. That is why your lawyer checks the title type as part of the purchase.
The most straightforward and generally most sought-after. You own the land and whatever is on it, subject to the usual council rules. There is no body corporate, no shared land, and no ground rent. Most buyers prefer it for its simplicity and freedom.
Common in New Zealand, especially where a section was subdivided. You own an undivided share of the land jointly with the other cross-lease owners, and lease your specific area and dwelling. The catch is that changes, like extending or altering your home, can need the other owners' consent, and the title must match the buildings (a defective cross-lease, where the title does not match what is built, is a known issue).
Freehold avoids the shared-decision and title-matching issues of cross-lease, and the fees and rules of unit title, which is why it is often the simplest and most liquid to own and sell.
Common in apartments, townhouses, and complexes. You own your unit, plus a share of the common areas like driveways, lifts, and grounds, managed by a body corporate. The body corporate sets rules and charges levies for maintenance, insurance of the building, and a long-term maintenance fund.
With leasehold, you own the building but lease the land, paying ground rent to the landowner. The ground rent can be reviewed and rise over time, sometimes sharply, and the lease has an end date. Leasehold properties are often cheaper to buy but carry this ongoing and uncertain cost.
For unit title, review the body corporate levies, minutes, and long-term maintenance plan. For leasehold, review the ground rent and review dates. These details can change the true cost of ownership a lot.
Assuming a house is freehold when it is cross-lease or unit title can mean unexpected restrictions or costs. Always confirm the title type.
Unit title levies and rules are part of the deal. Skipping the body corporate's finances and minutes can hide big upcoming costs.
A cheap leasehold price can mask a ground rent that jumps at review. Understand the rent and review terms first.
If the cross-lease title does not match the buildings, it can complicate sale and finance. Your lawyer should check this.
See our First Home Buyer and Reading a LIM Report guides. Final word: the ownership type, freehold, cross-lease, unit title, or leasehold, changes what you own, your costs, and your freedom. Freehold is the simplest; the others carry shared decisions, fees, or ground rent. Always confirm the title type and have your lawyer review it. This is general information, not legal advice.
Quiz on Property Ownership Types (20 Questions)
If you've found a bug, or would like to contact us, or learn more about James Graham and Calculate.co.nz.
Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.
All calculators and tools are provided for educational and indicative purposes only and do not constitute financial advice.
Calculate.co.nz is proudly part of the Realtor.co.nz group, New Zealand's leading property transaction literacy platform, helping Kiwis understand the home buying and selling process from start to finish. Whether you're a first home buyer navigating your first property purchase, an investor evaluating your next acquisition, or a homeowner planning to sell, Realtor.co.nz provides clear, independent, and trustworthy guidance on every step of the New Zealand property transaction journey.
Calculate.co.nz is also partnered with Health Based Building and Premium Homes to promote informed choices that lead to better long-term outcomes for Kiwi households.
Calculate.co.nz is hosted in Auckland via SiteHost new Zealand.
All content on this website, including calculators, tools, source code, and design, is protected under the Copyright Act 1994 (New Zealand). No part of this site may be reproduced, copied, distributed, stored, or used in any form without prior written permission from the owner.
© 2019 to 2026 Calculate.co.nz. All rights reserved.