My parents own a large block of land which has their PPOR on it. They are happy to subdivide and let us use the land to build our house on.
My question is whether it is possible to lease land? I know this is done quite often in NZ and with Crown land in Australia.
The second question is what would banks think of financing a building on leased land? I would have thought that if the lease was for 99 years and a mortgage was for say 25 years than the bank shouldn't have a problem.
As my parents already own the land we were hoping to do the subdivision and then put the land in a family trust and lease of the family trust. My parents have a number of IP and when Dad found out about family trusts, he decided that the cost of stamp duty to transfer any of them would be too much, so now my wife and I are keen to invest ourselves we are keen to get the right structure in place first.
Any thoughts or suggestions would be appreciated.
Thanks,
Peter & Melanie Timms
My question is whether it is possible to lease land? I know this is done quite often in NZ and with Crown land in Australia.
The second question is what would banks think of financing a building on leased land? I would have thought that if the lease was for 99 years and a mortgage was for say 25 years than the bank shouldn't have a problem.
As my parents already own the land we were hoping to do the subdivision and then put the land in a family trust and lease of the family trust. My parents have a number of IP and when Dad found out about family trusts, he decided that the cost of stamp duty to transfer any of them would be too much, so now my wife and I are keen to invest ourselves we are keen to get the right structure in place first.
Any thoughts or suggestions would be appreciated.
Thanks,
Peter & Melanie Timms