LEASE - ACT

A lease is a document that is a legally binding agreement between the Government and you   the lessee. It is a written document that sets out the rights and obligations of lessees and states the purpose for which the land can be used.

One of the key obligations of lessees is to develop the land in the time prescribed in the lease. For residential uses the standard clause states that construction must start within 12 months of the commencement of the lease and be completed within 24 months. The front page of your lease will state the commencement date.

For its part the Government warrants that the lessee can have and use the land that is described in the lease for his or her benefit and can remain as the owner of that land for the term of the lease.

HOW LONG DOES MY LEASE LAST?

Most residential leases in the ACT are granted for a term of 99 years.

WHAT HAPPENS WHEN MY RESIDENTIAL LEASE EXPIRES?

Provided that the land is not required by either the Territory or Commonwealth for public purposes, the Government will grant a new residential lease towards the end of the 99 years, to the person holding the old residential lease, without payment (other than an administrative fee). This gives the lessee continuing security of tenure.

CAN I MORTGAGE AND SELL MY RESIDENTIAL LEASE?

Yes. As a lessee you can mortgage and sell your lease provided you have completed either the construction or the improvements required in the lease. The one exception is that if the improvements have not been completed the sale can only be made with government consent. Before you can sell a residential lease without restriction, you will have to complete the construction of the residence. Otherwise, residential property in the ACT is as readily saleable as if it were anywhere else in Australia.
LEASEHOLD SYSTEM OF LAND TENURE

There is no freehold land in the ACT all land tenure is by leasehold, held in public ownership by and for the people of Australia. The land is leased with the right to develop and use for specific purposes. Leases are offered for a set period, generally 99 years. They are transferable and can be willed. Lessees own the improvements, but the land continues to belong to the people of Australia. Most leases are issued by the Territory Government. Those on National Land are issued by the Commonwealth.

LEASING COMPLEMENTS PLANNING

The planning system in the ACT is complemented by the leasehold system of land management and administration. When a lease is issued, it contains provisions which control use of the land and guide its development. Each lease contains a purpose clause setting out permissible uses for the land and usually includes conditions setting out the term of the lease and the nature and extent of development allowed.

See

national capital plan