Friday, 4 May 2007

Confucious Says: Leasehold's, Huh?


Confucious says: "Man who stand on toilet is high on pot!"

Well morning everyone, hope you're all up and about and loving life cause, "hey, hey, it's FRIDAY". Firstly let me just add that this weekend, is the weekend that both The Sharks and The Bulls kick some serious @$$! Secondly, let me add that this weekend is the weekend that Ferrari kicks some serious @$$!

Now that I have that out of the way I thought I'd give you confucious lesson number 3.

Leasehold Ownership (99 year lease)
Leasehold ownership as a form of property ownership was made available in 1978 to promote black home ownership. Further legislation passed in 1985 removed earlier limitations and has made this form of land tenure more attractive. Features of the 99 year lease include the following:

  • The transferee of a 99 year leasehold right will, irrespective of how long the lease has already run, enjoy tenure of 99 years.

  • Generally, costs are lower for this type of tenure than those applicable to freehold property

  • No transfer duty and stamp duty is payable on 99 year leasehold transfers



Leasehold ownership transfers and related documentation are registered in the offices of the Registrar of Deeds.

6 comments:

Dave said...

Is 99 leasehold still a possibility, can one obtain a small piece of agricultural land, part of an existing, larger agricultural unit in terms of leasehold?

Chris "The MAGE" said...

Hi Dave Great question? This seems to be mpore prevalent in Mocambique and other African states, but carries a bigger risk in these areas, howver SA folk seem to be adverse to risk and jump in. In Cape Town, the Clifton beach properties were 99 year leases but since those expired they have been sold (At fairly wopping prices). These are slowly but surely being converted to freehold. So the chances are slim as everyone has switched on to the VALUE of freehold sale and with agricultural land this is even more so. Look at Hoedspruit for example, Raptors View etc are all 1 HA stands at approx R 500K and the farm has 300 odd stands, do your sums, they make big money by converting. As we level the p-laying fields with the government acts asking for 30% of the land redistribution, the ownership of land under freehold and registered in the deeds office becomes more prevalent as well. Hope this answers your question

Dave said...

Hi...did some more research on this, spoke to a couple of attorneys...The only sure answer to the scenario I sketched in previos post is that the interpretation of whatever law is that, where you are not allowed to subdivide agricultural property, you are not allowed to portion it off through 99 year leasehold. I will pursue it further, it seems that knoledge of the mechanics of 99 yr lease is not common. Any idee where I'll be able to obtain advice?

Anonymous said...

Hi Dave

Not that easy i seem to get same types of answers as you. My best results and answers come from googling "99 year leasehold in SA" with some great answers mainly from historical (Hysterical), government and University sites with the rest being estate agents etc

I will do some homework and get back to you

My ADSL line was down (Telkom our useless and ONLY service Provider in a mess again)

Take it easy and will let you know
Chris the Mage

Anonymous said...

Hi Dave

Not that easy i seem to get same types of answers as you. My best results and answers come from googling "99 year leasehold in SA" with some great answers mainly from historical (Hysterical), government and University sites with the rest being estate agents etc

I will do some homework and get back to you

My ADSL line was down (Telkom our useless and ONLY service Provider in a mess again)

Take it easy and will let you know
Chris the Mage

G said...

Greg
Hi guys, I am also trying to find out about 99 yr lease to build a house on a farm (Farm A)that is part of a greater block of farms within a company......
am i right that one would have to get the lease for entire Farm A as it is described on title deeds.
Happy New Year