Subdividing Land

What is property subdivision?

Subdividing land is the process of creating new interests in a piece of land or building, by dividing the existing interests up into new titles.

Subdividing can have several benefits:

  • It allows you to generate further income or realise greater equity in your land

  • It is a better use of vacant land being under-utilised

  • It can create a section that can help a family get on the property ladder

Further income can be generated by subdividing and building a rental property on your new site. By simply getting an approved resource consent to subdivide from your council, you can create greater equity via property development. Alternatively, by completing the subdivision yourself, you can sell the new lot to a new homeowner at market rate.

Property Surveying

Types of Subdivision

There are three common types of subdivision in New Zealand. Fee simple developments, Unit Title developments and Cross Lease developments.

Fee simple (Freehold) Subdivision

A fee simple (previously freehold) subdivision is the most common form of subdivision in New Zealand. A fee simple subdivision is when you take an existing interest in the land in the form of certificate of title and generate two or more new certificates of title by creating new property boundaries within the existing property boundaries.

Our Fee Simple Subdivisions page can answer all your questions on Fee Simple Developments.

Unit Title Subdivision

A unit title development is the subdivision of a piece of land and buildings into principal units, accessory units, and common property. Unit title developments are a common form of subdivision for flats, apartments, and commercial buildings.

 

Cross Lease Subdivision

In a Cross Lease Development, multiple individuals own an equal share in the land and enjoy exclusive use of a flat or building which they lease from the other owners. There are often common areas, e.g. driveways, and exclusive use areas, e.g. gardens, also depicted on the flats plan.

To learn the ins and outs on Cross Lease Subdivisions visit our Cross Lease Subdivisions page.

How long does it take to subdivide?

The time it takes to complete the subdivision process can vary depending on the complexity of your development. In our experience, the largest time frames associated with the development process are around council processing when it comes to issuing Resource Consent, Engineering Approvals, and getting 224c forms signed off. 

A simple cross lease conversion can take six months from start to finish, while a 2-lot subdivision can take up to 14 months, depending on the construction required.

At KW Consultants, we use our experience and contacts within the council to proactively create efficiencies in the development process, thereby reducing the time of development, and saving our clients time and money.

How much does it cost to subdivide?

Every subdivision is different, and depending on the complexities of your development, the price can vary to reflect this. We always advise our clients to crunch the numbers before starting the process and secure the necessary funds to complete the development.

 

 

New Subdivision

Fees associated with a development include:

  • Consultancy Fees such as Planning, Engineering, Surveying and Architectural Fees

  • Council Processing Fees

  • Council Development Contributions

  • Servicing the lots for stormwater, wastewater, water, power, telecommunications and gas

  • Construction Costs for driveways and building new buildings

  • Solicitors Fees

 

To develop a site into two properties can cost between $50,000 and $150,000, excluding building costs. At KW Consultants, we provide free development proposals on the costs associated with developing your site. For your free development proposal, call our experts in Auckland subdivision today.

 

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