What is the difference between cross-lease and freehold?

Short answer: Freehold = own land and house. Cross-lease = own share of land, lease your site. Freehold is simpler and preferred.

What this actually means in plain English

Freehold means you own the land and house outright. Cross-lease means you own a share of the land and lease your house site from the other owners. Cross-leases are cheaper but have restrictions. You need other owners consent for major changes. Cross-leases are harder to sell and insure. Freehold is simpler and preferred.

Key Facts

Freehold: outright ownership of land and buildings
Cross-lease: own share of land, lease building site
Cross-lease needs consent for alterations
Cross-lease harder to sell and insure
Cross-lease usually cheaper purchase price
Converting cross-lease to freehold costs $10,000-$30,000

Example

Freehold Price: $600,000

Cross Lease Price: $520,000

Cross Lease Restrictions: Need consent for extensions

Recommendation: Freehold unless budget very tight

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