SLIDE 1
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
HISTORICAL CONTEXT
- Traditional maxims/rules of law
- ‘He who owns the soil owns everything
above and beneath it.’
- Impractical in modern life
The three bases of tenure for multi-unit properties in Jersey: Long - - PowerPoint PPT Presentation
The three bases of tenure for multi-unit properties in Jersey: Long - - PowerPoint PPT Presentation
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013 The three bases of tenure for multi-unit properties in Jersey: Long leasehold, flying freehold and share transfer By Georgina Cook Immovable Property:
SLIDE 2
SLIDE 3
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
THE SWINGING SIXTIES
- Apartment blocks constructed
- Horizontal division of property
- Conflict with old maxims
SLIDE 4
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
SHARE TRANSFER
- Transfer freehold to a holding company
- Bespoke articles of association
- Purchase block of shares, ownership of
which gives exclusive right to occupy and use an apartment
- Historic stamp duty saving - now closed by
Taxation (Land Transactions) (Jersey) Law 2009
SLIDE 5
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
LIMITATIONS OF SHARE TRANSFER
- Movable property
- Creation of charges over shares difficult
- States loans unavailable as no security over
movable property
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Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
FLYING FREEHOLD
- Loi (1991) sur la copropriete des immeubles batis
- Established a basis for horizontal division of
immovable property
- Declaration of Co-Ownership
- Ownership of a Private Unit and an interest
in the Common Parts
- Acquire title by contract passed before Court
- Charges secured over flying freehold property
SLIDE 7
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
LONG LEASEHOLD
- Not popular in Jersey
- No statutory framework
- Ability to create a charge over a lease not law
until Loi (1996) sur l’hypotheque des beins-fonds incorporels
- Jersey lending banks not familiar in lending
against Jersey leasehold
- Conversion to flying freehold of older leasehold
apartments nearing end of term, rather than new long leases
SLIDE 8
Immovable Property: The issues Across sectors, across jurisdictions Monday 21 October 2013
SUMMARY
- Share transfer and flying freehold most common
tenure for horizontal division
- Land Transaction Tax closed stamp duty inequality
- Share transfer still popular if targeting non-local
investors – no restriction on who can buy shares
- Developments getting more complex – will long
leasehold become more popular?
- How will the three bases of ownership evolve?