The permitted use and the problem in getting the lessor’s approval for a change in use can be critical to the valuation. Lengthy and restrictive clauses are common in shopping centre leases. For example, draft menus have been annexed to restaurant leases.

In the ACT the lease purpose clause of the ground lease can be modified to allow another use if that use is not contrary to the Territory Plan. The owner has to pay a betterment tax if the change results in an increase in value.