Why is leasehold not the same as lease?

HT Estates - - HTESTATES -

the dif­fer­ence in the pre­mium paid by the lessee, to the ti­tle para­mount, at the time of the ex­e­cu­tion of the lease and the mar­ket value of the land pre­vail­ing at the time of the trans­fer.

Es­sen­tially, the rights of a lessee in re­la­tion to trans­fer of a leasehold property are limited. In the event of trans­fer (and in cer­tain cases in the event of sub­se­quent trans­fers) the ti­tle para­mount would gen­er­ally be en­ti­tled to claim and re­cover 50% of the un­earned in­cre­ment of the value in the land from the lessee. Fur­ther, the lessee will re­quire the per­mis­sion of the ti­tle para­mount to trans­fer the property.

With the steady rise in property prices, the po­ten­tial pay­ment of 50% of un­earned in­cre­ment to the ti­tle para­mount, be­came sig­nif­i­cant in­cen­tive to avoid its pay­ment. The additional stamp duty and reg­is­tra­tion im­pact did not help mat­ters and thus evolved the sys­tem of power of at­tor­ney sales.

THINKSTOCK

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