Buying leasehold in Qld

[Sailesh Channan]

Hi

Does anyone know if a lease hold property is exempt from stamp duty. I have seen some properties that are sold as lease hold in a registered lease being promoted as being exempt from stamp duty under Queensland law. However, I am not sure if it 100% true.

Lease hold properties are registered on the title and the owner can enjoy the same benefits as a owner of a strata or freehold property. Most lease hold properties run on a 99 year lease basis which is generally renewed when the property is sold.

Look forward to your feedback.

 

[cu@thetop]

Why top up the retirement fund of the vendor's grandkids? Is the price that much cheaper than freehold?

 

[the helix]

I'll start out by noting that, what you are describing would seem to be a Freehold Lease, as in.. a lease over a Freehold title. This differs from Leasehold, a term that is generally taken in the titling world to mean State Leasehold. (owned by the State and leased to companies or individuals.. you'll generally see these in rural areas, with the annual rent being paid to the State)

So, in answer to OP's question, it would depend on the type of Lease.

There are exemptions under the Duties Act 2001 (QLD) in Chapter 2, Part 13 Exemptions. So you would need to identify if the Lease you are interested in purchasing falls into any of these categories.

Edit:

Also, found This link from the Titles Office which at the end of [1-2480] states, "A transfer of a lease must have a duty notation and lodgement fees are applicable."

If in doubt, ask for more details from the vendor, or obtain a copy of the lease to see if it fits into the exemption categories.