Subdividing land

The process of subdividing and then building a house can appear daunting if you have never done it before, which is why Box™ is here to hold your hand at each step. The jargon itself is confusing – subdivision consent, land-use consent, resource consent, building consent – so many consents and which one do I need, when! Then there is the uncertainty – how much will the subdivision cost and how long does it take? We’ve all heard the horror stories….
Ultimately, the complexity comes with the number of different people that are required – from surveyors to services engineers, planning consultants, solicitors and designers, not to mention the bank which might be financing it!

Fortunately it’s all about process. There are many people on hand who have been through the process many times with various sites and who can advise you. Box™ has developed a process flow for subdivision projects which we can tweak for each individual case. There is a cost involved, but the bulk of the cost (around 75%) comes after the resource consent is granted, when you decide to undertake the physical infrastructure works. As a rule of thumb we see subdivision costs totalling between $130k and $180k.The first thing we do is a feasibility study. This tells you whether you are able to subdivide, what the risks are, what the process will be and what the estimated costs are. At this point you also need to talk to a lender to understand what they require before lending you money for the project. For instance, do they require a certificate of title for the new section or are they happy to partially lend when the Resource Consent is issued?

Once we have established what the process looks like for your site and what likely costs are, we start the subdivision process. This includes managing the consultants involved to produce the documentation for council, but also drawing up concept house plans so we can optimise how the site is subdivided to best fit the house(s).

The subdivision and land use consent application is handled by the planner. While a  surveyor will survey the site and assist the designer to draw the subdivision scheme plans. The planner will incorporate engineering reports and answer council questions. The time taken to get subdivision consent will depend on the complexity of the process. Usually, the trickiest part is negotiating with bodies how to resolve technical stormwater and wastewater issues for the new lot. This can make the process drag out a bit.

Once the consent is issued, you are not out of the woods just yet. You will need to do the physical infrastructure works so that a legal title for the lot can be issued. This means creating new connections for wastewater, stormwater, power and data, and a new access way for vehicles. Once this is done, signed off by engineers and council, your solicitor can lodge the documents for a new Certificate of Title!

Subdividing can often help off-set the construction costs of a new dwelling for you, if you are contemplating subdividing and building then contact us and we can work through your particular case to see if it is a sensible option for you.
By Box

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