Finweek English Edition - - IN THE NEWS -

Cont rollin g forei gn owne rshi p of land through lease­hold is a mea­sure put in place by a num­ber of coun­tries. Lease­holds, not that com­mon lo­cally and form­ing a small per­cent­age of res­i­den­tial prop­erty trans­ac­tions, are cus­tom­ar­ily over a term of 99 years with the lesser of­ten be­ing the gov­ern­ment or mu­nic­i­pal­ity. In­tro­duc­ing lease­hold with few re­stric­tions for for­eign­ers could be the gov­ern­ment’s com­pro­mise plan. The term of the lease – al­legedly 30 years – and the abil­ity to ex­tend the pe­riod of the lease is li­able to af­fect in­vestor con­fi­dence, es­pe­cially for those where the be­queath­ing of prop­erty to heirs (nor­mally al­lowed in lease­hold) is im­por­tant. “Lease­hold,” says Golding, “i s not a con­ven­tional South African method­ol­ogy and would re­quire sig­nif­i­cant un­der­stand­ing and im­ple­men­ta­tion of dra­matic changes to cur­rent prop­erty prac­tice.”

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