The long lease

There has been a great deal of talk about 99-year leases which seems to have many, including Parliament, in a frenzy. What does a 99-lease entail? What happens at the end of the lease? Can your children inherit this piece of land? Below we answer some of the key concerns when it comes to a long lease.

Property Blog Articles | Advice | Contractual Matters | Market News

What is a long lease?

Firstly, a property lease is an agreement whereby the lessor (person who rents out the property) agrees to give temporary use and enjoyment over the relevant property for a set period of time to the lessee (person who is renting the property). 

A long lease is a lease which is valid for 10 – 99 years, taking into account any renewal periods. Unlike a standard lease, a long lease gives the lessee a limited real right against the property which is then registered against the Title Deed of the property in the Deeds Office, in the same way as other forms of property ownership would be. 

Can a long lease be renewed?

Depending on the agreement entered into between the two parties, a long lease can typically be renewed limitlessly. It can also be concluded for the lifetime of the lessee or any other person mentioned in the lease.

Can a long lease be transferred?

The rights conferred by a long lease can be sold at any time by the leaseholder and can be transferred to the beneficiaries or to their estate should the leaseholder pass away prior to the termination of the lease. 

What are the benefits of a long lease?

Because a long lease is registered against the title deed of a property, it provides security to the lessee in the form of this limited real right and ensures the lessee can enjoy the property without disturbance. In addition, the lessee can enjoy the use of the property, including any rights conferred to him or her by the terms of the lease agreement (even against any creditors). Long leases can also be beneficial for business owners as they can lease commercial properties situated in prime locations through a long lease, especially on state owned land.

Follow Snymans on Facebook for more legal information, tips and news about property.

26904

Recommended for you

Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

6 top tips from the Snymans Team

2107

For many, the start of 2020 means a new property search, or in some cases a sale. Because there is so much to think about when embarking on this exciting process, the team at Snymans Inc have put together some of their top tips to help you on your journey.

Read More
Property Transfers | Bond Registrations | Snymans Attorneys
Contractual Matters

New year, new home

2043

The new year has just kicked off and now is the perfect time to put plans in place to buy your new dream home. If you’re wondering where to start, read on to get some advice from the experts…

Read More
Property Transfers | Bond Registrations | Snymans Attorneys
Contractual Matters

Property registration and transfer costs: who’s responsible for what?

7160

A property transfer comes along with significant expenses, but being well informed about what registration and transfer costs you can expect to incur means that you can plan carefully and avoid any unpleasant and costly surprises.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

The powers and duties of trustees in the transfer of immovable property

14222

There often comes a time when a beneficiary becomes entitled to take transfer of a property that is registered in the name of a trust. When this happens, there are a few options available to the trust in order to put this into effect.

Read More
Property Blog Articles | Advice | Contractual Matters | Market News
Contractual Matters

Appointing multiple executors of a deceased estate

23334

The decision of who should be appointed as the executor of an estate can be made by the testator. While it is common for a single person to be appointed, it is also possible for a testator to appoint more than one person to share this role which can bring with it certain added complications.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

The long lease

There has been a great deal of talk about 99-year leases which seems to have many, including Parliament, in a frenzy. What does a 99-lease entail? What happens at the end of the lease? Can your children inherit this piece of land? Below we answer some of the key concerns when it comes to a long lease.

Property Blog Articles | Advice | Contractual Matters | Market News

What is a long lease?

Firstly, a property lease is an agreement whereby the lessor (person who rents out the property) agrees to give temporary use and enjoyment over the relevant property for a set period of time to the lessee (person who is renting the property). 

A long lease is a lease which is valid for 10 – 99 years, taking into account any renewal periods. Unlike a standard lease, a long lease gives the lessee a limited real right against the property which is then registered against the Title Deed of the property in the Deeds Office, in the same way as other forms of property ownership would be. 

Can a long lease be renewed?

Depending on the agreement entered into between the two parties, a long lease can typically be renewed limitlessly. It can also be concluded for the lifetime of the lessee or any other person mentioned in the lease.

Can a long lease be transferred?

The rights conferred by a long lease can be sold at any time by the leaseholder and can be transferred to the beneficiaries or to their estate should the leaseholder pass away prior to the termination of the lease. 

What are the benefits of a long lease?

Because a long lease is registered against the title deed of a property, it provides security to the lessee in the form of this limited real right and ensures the lessee can enjoy the property without disturbance. In addition, the lessee can enjoy the use of the property, including any rights conferred to him or her by the terms of the lease agreement (even against any creditors). Long leases can also be beneficial for business owners as they can lease commercial properties situated in prime locations through a long lease, especially on state owned land.

Follow Snymans on Facebook for more legal information, tips and news about property.

26904