|LAND USES||* Lease duration is
60, 99 or 999 years.
* Limited by purpose of lease
and land legislation.
* Stocking levels, cultivation
etc. may be restricted by
* Limited by environmental
and town planning controls.
|Limited by environmental
and town planning
|DUTY OF CARE||* High level of duty of care
defined in land legislation.
* May be responsible
for developing and
* May be required to engage
in property planning.
|Duty of care following
common law and as
required by some
Acts or its equivalent.
|TRANSFERABILITY||* Lease transfers require State
or its equivalent's approval.
* and sub-division
|* Fewer limitations
* Aggregation and unlimited
right to sub-divide and
aggregate subject to town
|Powers to acquire leasehold
interest or withhold land
when lease expires.
|Some powers to acquire
land for public works.
|Varies according to lease
type but forfeiture for
|Very high level of security.|
Advantages & Disadvantages
|Advantages||* Smaller initial outlay.
* Less financial exposure than a
* Rent and any service charge is a business
expense spread over the lease term.
|* You own the property outright
* You can use the property as you wish,
subject only to any planning or other
* You have greater control over the
management of the property, e.g you
choose when to carry out works of repair
* Property may rise in value.
|Disadvantages||* The lease will usually contain restrictions
as to the use of the premises, allowing
other parties to use the premises etc.
* Unless there is a break option, you are
bound to comply with the lease
obligations for the duration of the term.
* Even if you find another party to take
over the lease, you will probably be
required to stand as guarantor.
|* A property with poor, limited or no
financial history will find it difficult to
obtain commercial mortgages.
* Cash flow will be affected by the payment
of any deposit.
* Mortgage costs may increase in line with
any rise in bank base rates.
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