‘Ownership’ comprises a number of rights
- Caglan Bagci, NZIJ Mortgages
I was a bit disorganised at the time I sat down to write this article. Information I had hoped to have access to, never materialised and I was left scratching my Movember handle bars wondering what to write about.
Movember is such a satisfying time for men. We can unashamedly fashion any moustache design or shape that we desire all the while protected from criticism due to the worthiness of the cause. I began to wonder what it meant to own a moustache or anything for that matter. And thought it would be worthwhile considering this.
We often don’t stop to think about our complete range of options with something that we buy when we buy it. Often we have a specific use or uses in mind for the thing that we buy and never really look much beyond that specific use.
When you buy a four wheel drive recreational vehicle you are probably thinking that it should just fit in to the parking spaces outside your favourite café but may also gain a certain satisfaction in knowing that you could drive it off road reasonably effectively if ever the time came where that might be needed. Have you ever wondered if you had a right to blow it up? How about putting a mast on it? Can you extend it by 10 metres?
With most aspects of life in modern society you will find that if you scratch the surface a little, the state (mother if you are an Alien fan) has imposed restrictions on almost every aspect of your life, quite possibly for your own good.
Some of mother’s rights over the property you own are that she can compulsorily acquire it, levy it, rate it, tax it, control the use of the land, control the use of the activities on the land, enter it and run public utilities over it.
Some of your rights beyond ‘quiet enjoyment’ may be that you can own it, build on it, occupy it, lease it, develop it and sell it.
A significant aspect of the value of a specific property will be reflected in your range of rights in respect to that property. To that extent a freehold title should confer greater value to the owner than leasehold, cross lease, unit title or company share if all other things are equal.
For example, a company share title may be limited to owner-occupier usage. A unit title or cross lease may require you to get your co-owners’ consent over the most minor of alterations or modifications to your property. A leasehold interest in land may mean that your property will not increase in value at the same rate as other similar properties as you do not own the land.
I have seen a number of occasions where property co-owners have felt frustrated that they could not do the things that they wanted to do with the property that they own. To avoid this frustration it is imperative that you get good legal advice at time of purchase and try to think about your interest in a property with a longer term view in mind. You also need to try to get a sense of what will be done with the land in the surrounding area over a longer period of time.
If you find that you are still frustrated then getting involved in some charitable cause may help you get a calming perspective to the situation!
I am happy to respond to any questions on this article or anything in previous issues. Send your questions to mortgages@nzij.co.nz
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