Most owners of residential leasehold land understand the pros and cons of such ownership. The potential to enter or climb up the property market ladder with the purchase of a home on leasehold land is a reasonable carrot. That carrot becomes an issue when/if the landowner changes the goalposts and/or refuses to allow subsequent free-holding... Stuff: 29-June-2019
I wonder, given that there may be other entities keen to quit their endowments as CC did in this case, whether there is a way to prevent the kind of rent-seeking behaviour that inevitably follows. Leasehold might be a more useful form of tenure if the parties involved had an eye on more than just the bottom line. Good on the investors who did the hard yards to get it sorted, rather than just sitting on the freehold.
A three-bedroom home in the heart of Grammar zone in Epsom, Auckland, sold in October for $233,000. The price isn’t a misprint – while its neighbours are worth more than $1 million, the property changed hands for less than a quarter of that price because it is leasehold. The land it sits on is owned by the Cornwall Park Trust Board.
The owner of the property has to pay $13,750 a year for the land under it and can expect a significant increase in that amount when the lease is renewed in 2032.