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24 August, 2023 | Jennifer Edwards
Finding out if you can subdivide your property
Feasibility Assessment
Before embarking on the subdivision journey, it’s essential to conduct a feasibility assessment. This involves evaluating factors such as the property’s size, zoning regulations, local council rules, infrastructure, and potential costs. Consulting with a legal professional and a land surveyor can help you gain a clear understanding of the viability of your subdivision project.
Engaging a surveyor
There are a few steps along the way to achieving a subdivision of your property, and one of your first ports of call would be engaging a surveyor to see if a subdivision can be carried out. The surveyor would look into whether a subdivision is possible and what your costs would be They would also advise you on would be needed to comply with Council subdivision requirements and any other issues that may the subdivision. The surveyor and Council will consider some of the following when making a decision to grant you a subdivision consent:
Some but not all of the considerations are:
Most Councils have a service where you can book a meeting with them to discuss your plans for the site. Your surveyor may do this for you or if you are wanting to be involved in the process attend this meeting together. You could phone your local Council to find out about this service in your area, they could also advise you on the cost of the subdivision.
The costs involved in completing the due diligence to assess whether subdividing is a feasible option can be significant, and you may discover once you have invested that money that subdividing is not possible, or not going to work out the way you thought it might.
Paying for the subdivision
A common scenario in Auckland, and elsewhere, involves parents subdividing a portion of their property to create a section for their children to build their own home. This process can be slightly different due to certain unique considerations. Often the arrangement is that the children will “buy” the land off their parents, and this money will be used to fund the cost of subdividing the property
Banks and financial institutions require a clear title before granting a mortgage. This means that the subdivision process must be completed, and the new titles issued before the children can secure a mortgage for building on the land, or to purchase the land off the parents. In this case, the upfront costs of subdivision would have to be paid by the parents, who could then be later recovered from the children when they buy the newly created section.
Resource Consent Application
Obtaining resource consent from the Auckland Council is a pivotal step in the subdivision process. This application includes detailed plans, surveys, and relevant documents outlining your proposed subdivision. The Council assesses the proposal’s impact on the environment, infrastructure, and neighbourhood character before granting approval.
Legal Documentation
Once the surveyor has completed plans and achieved Resource Consent, and the homeowner has completed all of the requirements Council have set out in the Resource Consent, then the lawyer can start working to complete documentation such as drafting necessary easements, utility providers documents and obtaining bank consent. Finally they will lodge your documents with Land Information NZ for new titles after Council issues their final completion certificate called a 224(c) certificate.
Costs
there are a variety of professional services and costs involved in subdividing a section. Below are some that you should factor into your budgeting decisions. (There may be additional costs that arise depending on where your section is and the nature of the land being subdivided).
Subdividing takes the work of you, your surveyor, your bank or broker and your accountant all working together. The surveyor working with plans and Council, your lawyer with obtaining a copy of your title and existing registered instruments on your title, your bank as to how you are going to pay for the subdivision and your accountant for any tax issues.
How long does subdivision of a section take?
Subdividing is indeed a slow process and not something that can be done in a matter of weeks or months. Rather it is at least a 6 month or longer project, however working together collaboratively can reduce the stress and time to achieve your end result. It will depend on whether your subdivision is just creating 1 lot or if you are creating a few lots with services to be implemented.
Act now to secure your property’s future. Subdividing your property can be a game-changer, but the intricate web of regulations, costs, and strategic decisions demands careful navigation. Nz subdivision expert, Jennifer Edwards has a proven track record in guiding property owners like you toward successful subdivisions. With the New Zealand property landscape evolving rapidly, seeking advice sooner rather than later is imperative. Don’t miss out on the chance to unlock your property’s full potential. Reach out to Jenn today to explore how she can assist you in turning your subdivision dreams into reality.
Jennifer Edwards
Ph – 09 836 6889
18 September, 2013 | Jennifer Edwards