We’re often approached by Queenstown / Wanaka property owners (and potential purchasers) asking if and how they can subdivide their property. The new Queenstown Lakes District Plan has recently changed to allow a higher level of subdivision (compared to the old rules) in many areas – especially residential zones. This means that in many cases, properties that were previously not able to be subdivided, are now eligible.
In this post we will provide a high-level and simplified overview of the subdivision process, and what you need to do to split off that piece of paradise.
Step 1: Do You Background Research
Covenant / Consent Notice Restrictions
You firstly need to check whether or not there are any imbedded restrictions on the title of your property that would prevent you from subdividing. Your lawyer can assist with this, but as a first step check the wording of any covenants or consent notices that are registered as an interest on your title. Let’s look at an example – here’s the title for one Wanaka property:
The green box is a consent notice (restrictions specific to the property which the Council has control over), and the red box is a land covenant (which is usually between private parties – such as the developer and property owner). If you do not have these documents (“interests on a title”), you can order them from either Cheap Titles (recommended) or Land Information NZ.
In this case the covenant contains a clause preventing further subdivision:
In this case you would be best to obtain advice from a lawyer to determine if it is possible that these restrictions could be bypassed.
If there is a condition regarding subdivision on a consent notice (which relates to the Council), it may be possible to apply to remove this condition as part of the subdivision application.
The District Plan Rules
The District Plan contains the core of the Council’s rules regarding subdivision of land and what can/cannot occur. We’ll be honest – it’s complex. There are of course rules which specify the minimum size your property must be once subdivided, but there’s also a whole host of other rules that are very much property-specific, and depend on the Planning Zone the property is located in.
Many of our zones also do not have a minimum lot size, meaning there is often no black & white “yes” or “no” answer to the question as to whether or not you can subdivide!
Let’s make it easy – fill in the below few questions and we’ll get back to you pronto with a high-level overview of the subdivision rules relating to a particular property, and the general likelihood of it being possible to subdivide. We aim to get back to you within 24 hours – this service is completely free.
Step 2: Plan the Subdivision
The next step is to plan out the subdivision. Where will the new boundary (or boundaries) go? How will the lots be accessed? Will water supply, wastewater drainage, electricity etc need to be extended?
You don’t need to engage a surveyor to start to think about this – a lot of it is common sense. Print out a map of your property using the Council’s free mapping tool get outside and start drawing in where you think this could all go. Your initial sketches will help us provide you with free advice on the subdivision layout including:
- If the lot sizes will meet the District Plan requirements
- Access width requirements
- What Council services are available (water supply, wastewater disposal, stormwater disposal)
- Likely physical works you will need to undertake (such as forming new vehicle access, repairing existing driveways, installing new services)
Step 3: Get the Specialists On Board
Next step is for us to engage a surveyor to prepare a ‘scheme plan’ of the subdivision. For this the surveyor will visit the property and undertake a survey in order to prepare a basic electronic plan of the subdivision that we will need in order to apply to the Council for a resource consent to subdivide. We have established relationships with the best surveyors in the District (from our experience!) and will assist you in getting this step right.
We may also need to engage other specialists, depending on the particular circumstances surrounding the subdivision. For example we may need to bring in a Geotechnical Engineer to provide a report on the land and any identified natural hazards, a Traffic Engineer if there are access/parking issues, or a Landscape Architect if the site is located in a more sensitive location.
We would normally liaise with all these parties on your behalf to source the information we know the Council will need.
Step 4: Resource Consent
Right – we now have a scheme plan of the subdivision, have a plan for how everything will work (services, access etc), have any necessary specialist reports/plans and are ready to apply to the Queenstown Lakes District Council for the subdivision resource consent.
This next part is our expertise – the resource consent application. These applications vary from straightforward to extremely complex and need to meet all the requirements of the Resource Management Act for Council to even accept an application for processing (let alone start to consider whether or not it will be granted). In essence every resource consent application requires the following:
- A detailed description of the site and proposed subdivision, including what services will be installed, how access will be made etc.
- A detailed assessment of effects on the environment – essentially we need to present a strong argument that your subdivision is appropriate and a good outcome for the area, without resulting in significant adverse effects.
- A strong argument that neighbours and other entities are either not affected by your subdivision, or that we have sourced their approval.
- A robust assessment of the subdivision against the Objectives and Policies of both the Operative and Proposed Queenstown Lakes District Plans.
- An assessment of the subdivision against the relevant areas of the Resource Management Act.
- All supporting technical reports (remember that geotechnical report we sourced? we include it in the resource consent application) and plans.
- Confirmation from utility providers (such as Chorus and Aurora) that they can extend their networks to service your subdivision.
Preparing a resource consent application usually takes around 2 weeks from when all supporting information/reports are made available.
We then submit the application to Council. It will be allocated to a Council Planner who will also seek input from various Specialists (i.e. Engineers) when determining Council’s stance on the proposal. It is usual for the Council to request further information from us in order to gain a better understanding.
As a best-case scenario, Council will take 20 working days to process and grant the resource consent. However, the actual time taken to go through the resource consent process is a bit of a “how long is a piece of string?” kind of question. In general, we usually advise 6-8 weeks for a fairly standard subdivision, but a more complicated one can take significantly longer.
We have been involved the hundreds of resource consent applications over the years and so can give you a good ‘feel’ for how long it will take Council to process your specific application.
Once Council is ready to grant the resource consent, they will provide us with the opportunity to review the conditions that the consent will be subject to. This is a very important step as it allows us to carefully consider all conditions, explain them to you, make sure you understand what will be required, and negotiate with Council (if necessary).
Once we have reached agreement on the conditions, the resource consent is granted and issued by Council – a pdf file sent to us via email.
Step 5: Let’s Build It! Time To Complete Physical Works + More Survey Stuff
Great! You now have a granted resource consent! The next step is to fulfil the conditions of that consent. This could include:
- Completing earthworks (in a responsible and environmentally-friendly manner)
- Building access – i.e. a driveway or road
- Installing services such as water, electricity, telecommunications, stormwater and wastewater disposal
- Undertaking any required landscaping
Prior to undertaking physical works, the detail of what is being built/installed needs to be assessed by the Council’s Engineers through a process called “Engineering Acceptance”. Basically this involves the Council’s Resource Management Engineers confirming that the detailed design of the works will comply with the QLDC’s Land Development and Subdivision Code of Practice (CoP).
Also during this time, the surveyor will undertake more survey work and will produce more detailed subdivision plans in accordance with what was approved in the resource consent. They will then apply to the Council for a “Section 223” survey plan approval. This is where Council’s subdivision team will check the boundaries, areas, and any easements, amalgamations and covenants that need to be prepared. Think of the Section 223 stage as Council signing-off the more refined legal/survey work that needs to be completed prior to the subdivision – but does not require the actual physical works to be completed.
Step 6: Sign-Off + Development Contribution Payment
Right so we have now completed all the physical works (access, services etc), and also the survey plan work (Section 223). We are now ready to go back to Council and ask them to sign-off the subdivision as completed. This is called the Section 224(c).
A s224(c) certificate is a final certification from QLDC that all conditions of the subdivision consent have been complied with. We apply for this certificate and Council will check that everything has been done in accordance with the resource consent conditions (and engineering approval).
For example this will involve a QLDC subdivision inspector visiting the property and inspecting the physical works. We also need to supply confirmation from the power and telecom companies that those services have been installed with their standards, supply “as-built” plans of what was built to Council for their records (i.e. so that they can keep track of all the infrastructure in the District) and demonstrate that any necessary covenants or consent notices have been prepared by a lawyer and are ready to be registered on the new titles.
The other matters that will be assessed at the s224(c) stage vary greatly. For example, if landscaping was required, Council would usually have a Landscape Architect inspect that the planting has been properly completed.
This is why we need to carefully review / negotiate all the draft conditions of consent in the resource consent stage, prior to the consent being granted/issued. It makes life a lot easier if everyone is on the same page about what will be required come sign-off time, and those requirements are reasonable (as everything costs money..).
Finally, it is highly likely that you will need to pay the Council a Development Contribution. A development contribution is a one-off payment that Council requires to help fund the upgrade of infrastructure in the District. When you subdivide off a piece of land that can be built on, that creates an additional ‘demand’ on our existing infrastructure (think roads, parks, water treatment). Development contributions assist Council in covering the cost of infrastructure upgrades.
The $$ amount your development contribution will be varies greatly depending on a number of factors, including exactly where the property is located. The Council does provide a free estimate calculator to give you an idea of what the amount will be. As a high-level ‘ballpark’ – you should anticipate a development contribution for a residential area subdivision which creates one additional lot to be around $20,000 – $35,000.
Once the Council has received payment of the development contribution and are satisfied that all conditions of the resource consent have been met, they will issue the 224(c) certificate. This is Council saying “we are satisfied you have met the requirements and you can now take this to the Government and finalise the subdivision/get the new titles”.
Step 7: Apply to the NZ Government for the New Titles
Almost there! Now that QLDC has signed off both the s223 and s224(c) certifications, we can apply to the NZ Government (through Land Information New Zealand) to have the new titles issued. This step is completed by the surveyor / lawyer. Once done, you will be sent copies of the new titles.
It often takes a while for both the Council and Land Information NZ to update their systems, allocate street addresses, generate a property number so that Council rates can be paid etc – however once you have the title, this can then be legally sold or transferred as it’s own independent property.
Step 8: You’re Done!
There you have it – that’s a high-level overview of the process for subdivision in New Zealand, particularly in the Queenstown Lakes District.
We’ve gone from a ‘sketch on a napkin’ to a newly-issued second title for your now-subdivided property.
Frequently Asked Questions
That’s a great question – and unfortunately one of the most difficult to answer. The associated costs to complete a new subdivision and obtain new titles varies greatly depending on the specific circumstances of the subdivision, and what physical works are needed. For example, one subdivision may be on flat land and use an existing driveway for access, while another may be on sloping land and need to have a new engineered driveway constructed. Other complexities include the resource consent process (is your proposal straightforward and aligned with the District Plan?), and legal matters such as covenants.
But…we know that a “it depends” answer isn’t all that helpful to you!
Here’s a bit more detail: The largest costs associated with a subdivision are usually the physical works, and the Council Development Contribution. As a high level ‘ballpark’ of a relatively straightforward subdivision, the estimated total costs could be anywhere from $50,000 – $100,000+ including application fees, legal fees, professional services/specialists (such as the Surveyor, Engineers), the cost of physical works, Land information NZ fees, and the Council development contribution. Subdividing around existing dwellings is usually at a significantly lower cost than creating a new vacant lot.
That depends on the zoning of your property, and also the feasibility of the subdivision. Let’s say your zone requires a minimum lot size of 250m2 and you have a 1000m2 property. While it may seem obvious that you can then subdivide this down into 4 new lots, in reality there needs to be land set aside for access, services etc. Also, the slope of the land may not make it practical to create 4 lots.
There are also some zones in Queenstown / Wanaka where there is no specified minimum lot size in the District Plan. Rather, the District Plan specifies “no minimum lot size” but provides the Council with the opportunity to assess a subdivision proposal in a holistic manner and have full discretion as to whether or not they will grant resource consent. This is why it is so important to get up-front advice specific to your property.
Yes – but it’s almost never as simple as Council one day deciding to refuse consent. We always have the opportunity to respond to any concerns raised by Council, or pursue notification of a resource consent application where the decision will be made by an Independent Commissioner rather than a Council Officer.
The number of subdivision applications declined by the Council is very small compared to the number of consents granted.
Again – a bit of a ‘how long is a piece of string’ kind of question – but assume around 10-14 months from ‘napkin drawing’ to new titles (for a straightforward subdivision).
Normally, you need to gain the s223 certification within 5 years from when the resource consent was granted, and have the s224(c) certificate issued (i.e. all physical works done) within 3 years after that. Note it is possible to apply for an extension to the resource consent if needed – but before it lapses.
Normally you can do either – however with the way the District Plan rules are structured, it is often possible to create smaller lots if a dwelling is already constructed on the new lot and you are subdividing it off.
Often – no. Provided your subdivision aligns with the District Plan requirements, all physical works are located within your property, and you do not need to gain access over a neighbouring property, you usually do not need to gain the approval of neighbours. However, we do recommend discussing your proposal with your neighbours out of courtesy – you never know – they may also be thinking of subdividing and there would be significant cost efficiencies in undertaking both at the same time.
A freehold / fee simple is the most common type of subdivision where the land is subdivided to create separate titles for each new lot. The new pieces of land are then solely owned by those named on the title. This kind of subdivision is what would usually be undertaken when splitting up a standard residential property into two or more lots.
A unit title subdivision is usually undertaken when the properties will share some significant common areas (such as common access/parking areas, apartment buildings). Unlike a freehold subdivision, you own both your “unit” or “units” (noting that this could also include non-building elements such as outdoor living areas), and a share in the common areas (called “common property”). Unit title properties are governed by the Unit Titles Act 2010 and are administered by a body corporate.
In general – we recommend people undertake a freehold subdivision, if possible. However, unit title subdivisions are also very common and well-established in New Zealand.
There are also other types of subdivision that are lesser used such as cross-lease.
Yes – we can discuss with a Council Duty Planner in a more informal enquiry (free). We can also take the proposal to a pre-application meeting with Council. A pre-application meeting is usually far more beneficial (especially for more complex proposals) as it allows us to present a concept subdivision proposal with a Council Planner and Engineer in a more formal setting to gain initial feedback, ask questions/seek clarification etc. While pre-application meetings do have an associated charge, we (and our clients) find the benefits usually far outweigh the nominal cost of the meeting.
Get Free & Specific Advice
We’ve successfully gained and processed many subdivision resource consents on behalf of clients over the years, and have a good understanding of the rules and what is required for a successful outcome. We also know ‘who’ to work with, and can provide you with ‘no BS’, up-front advice on the likelihood of your subdivision being approved by the Council.
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