Fee Simple Subdivisions
Fee Simple Subdivisions – Fee simple is often referred to as “an estate in fee simple” or “freehold”. (Please note – Freehold not to be confused with having no mortgage. You can have a freehold title with a mortgage! Believe me). A fee simple title is considered to be the title that has the greatest benefit to the owner in respect of enjoyment and use. A bit like a Bentley with low mileage. Very desirable. Unlike a Bentley with low mileage, these are by far the most common type of titles in New Zealand. Most in-fill residential and Greenfield developments, and all rural subdivisions would be creating Fee Simple titles in New Zealand.
The advantages of fee simple is that you have total control (often in partnership with the bank) and own the whole of the land and are able to make any additions or alterations to your property (subject of course to Council bylaws and consent requirements) without having to get the consent of neighbouring property owners, Unlike a cross lease title and unit title.
An owner can also register what are called “restrictive covenants” against their title to restrict future owners as to what they can build on the land. This can be undertaken without the need of any input from Council – just you and your lawyer. This is most common for example, where an owner owns a large parcel of land and is subdividing it into smaller parcels and wants to place height restrictions on the future lot owners so they can protect their view, or restrictions are placed on the titles relating to the types of building materials that are allowed. Just so you don’t end up with a Hillman Hunter next to the Bentley.