More and more, different generations of the same family are choosing to live near each other to provide support for ageing parents, or help children get onto the property ladder. Subdividing your land can be a great option to help multiple generations to live near each other while maintaining their own personal space.
How to subdivide
For many years, our clients have been carving off parts of their rural and lifestyle blocks as a way to help their children own their own home. In recent years, we have also seen this become a popular option for our clients in town – slicing off the back yard to keep ageing parents nearby and in their own home, or to help the kids raise their little ones.
Subdivision is the process of dividing a piece of land into two (or more) lots. Not all land can be subdivided – local Councils have rules in place that restrict subdivision depending on where you live.
Before you commit to subdivision, you will need to speak with:
Your lawyer – we can talk you through the process, review your title and help you have those tricky conversations with your family members.
A surveyor – a surveyor will co-ordinate your application to Council and manage any other work that needs to be carried out on the property to complete the subdivision.
Your bank – if you have a mortgage, then your bank may need to know of your plans.
Your Family
Every family is different, and care needs to be taken to structure a plan that best suits the needs of the individual family. If you are considering subdivision to help family members, then you will need to have a good discussion with your lawyer about how best to do this, while protecting your own future.
Take Marie and Timothy as an example. Marie and Timothy have lived in a 4-bedroom house on a quarter acre property in Hamilton for 30 years. They have three children who have all now left home, embarking on their own careers and starting their own families. Their middle child (Oliver) has a partner (Emma) and two small children. Oliver and Emma would love to own their own home, however with Emma not working and house prices as high as they are, Oliver and Emma have not been able to find anything suitable.
Marie and Timothy are considering subdividing their land and building themselves a new smaller home on the new back section to enable Oliver and Emma to live in the front house which is now just too big for them.
When Marie and Timothy come into the office, we would speak with them about:
If they have spoken to Council and a surveyor – is subdivision possible? What cost and timing limits are they working with?
Are they giving or selling the house to Oliver and Emma, or are they lending them the value of the section, or a combination of these?
If there is a gift element, how are they making this fair between their other two children?
Protection against unforeseen events – what happens if Oliver and Emma separate, or someone passes away?
Have questions or need help?
Subdivision can be a complex process, and when you add in your own family dynamics, it becomes even more important to ensure you receive expert advice. We can help you to ensure you have the correct structure from the outset. Gallie Miles is here to help. Please don’t hesitate to get in touch with our team.
