crown lease commercial property?

[evan1875]

does anyone have leasehold commercial properties?

the particular property has a crown lease of 25 years with 23 years left to run (QLD)

it was renewed in 2008 by current vendor but my understanding is that in 2033 there is a risk of state repossessing the land for other usage

agent assures that if that was to happen there will be compensation but the crown lease document i read states that is not the case

confused..

the other question is how does financial institutions treat leasehold when it comes to lending?

can anyone help me out a bit as i am totally out of my depth here

 

[Compropmanager]

It depends on the actual wording on the lease and the use of the property . To comment I really would need a bit more info. A few questions would be.

Is this a transfer of lease into your name?

Is there any options and at whose's request?

Is there any termimation clauses apart from default i.e. demolition reconstruction?

Is this a Land Lease or did they provide the building aswell?

What's the current use of the site?

furthermore being an agent I would say that if the lease says no compensation then there will be no compensation. Though there maybe a new act that forces the crown to pay compensation (very rare but there are cases out there)

GOODLUCK!!!

 

[evan1875]

Thanx CPM,

regarding that particular property i later found out from the SRO that it was a crown lease of the land in near a marine park.

there is no options as per lease

there will be no compensation for the irremovable improvements at the lease expiry as per lease

regarding renewing the lease in 23 years and in fact there has been a lot of hassle for the last owner to renew the lease due to environmental concerns

it is highly unlikely that a new lease will be granted

so there you go... a bad deal through and through

still love to know if any other forumite own leasehold stuff and how they deal with the uncertainty