27/04/2026
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𝗧𝗛𝗘 𝟵𝟵-𝗬𝗘𝗔𝗥 𝗟𝗘𝗔𝗦𝗘 𝗔𝗚𝗥𝗘𝗘𝗠𝗘𝗡𝗧 𝗜𝗡 𝗦𝗢𝗨𝗧𝗛 𝗔𝗙𝗥𝗜𝗖𝗔𝗡 𝗣𝗥𝗢𝗣𝗘𝗥𝗧𝗬 𝗟𝗔𝗪
In South African property law, a 99-year lease is a long-term lease agreement that grants the lessee use and enjoyment of immovable property for a period equivalent to near-permanent occupation, without transferring ownership, typically extending beyond the conventional lease durations. This arrangement is common in commercial developments such as Waterfall City and on certain traditional land or state land.
In terms of the Leases of Land Act 18 of 1969 long term leases are permissible. Long term leases are described in section 1(2) of the Act as :
"[𝘈] 𝘭𝘦𝘢𝘴𝘦 𝘰𝘧 𝘭𝘢𝘯𝘥:
(𝘢) 𝘦𝘯𝘵𝘦𝘳𝘦𝘥 𝘪𝘯𝘵𝘰 𝘧𝘰𝘳 𝘢 𝘱𝘦𝘳𝘪𝘰𝘥 𝘰𝘧 𝘯𝘰𝘵 𝘭𝘦𝘴𝘴 𝘵𝘩𝘢𝘯 10 𝘺𝘦𝘢𝘳𝘴; 𝘰𝘳
(𝘣)𝘦𝘯𝘵𝘦𝘳𝘦𝘥 𝘪𝘯𝘵𝘰 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘯𝘢𝘵𝘶𝘳𝘢𝘭 𝘭𝘪𝘧𝘦 𝘰𝘧 𝘵𝘩𝘦 𝘭𝘦𝘴𝘴𝘦𝘦 𝘰𝘳 𝘢𝘯𝘰𝘵𝘩𝘦𝘳 𝘰𝘵𝘩𝘦𝘳 𝘱𝘦𝘳𝘴𝘰𝘯 𝘮𝘦𝘯𝘵𝘪𝘰𝘯𝘦𝘥 𝘪𝘯 𝘵𝘩𝘦 𝘭𝘦𝘢𝘴𝘦; 𝘰𝘳
(𝘤) 𝘸𝘩𝘪𝘤𝘩 𝘪𝘴 𝘳𝘦𝘯𝘦𝘸𝘢𝘣𝘭𝘦 𝘧𝘳𝘰𝘮 𝘵𝘪𝘮𝘦 𝘵𝘰 𝘵𝘪𝘮𝘦 𝘢𝘵 𝘵𝘩𝘦 𝘸𝘪𝘭𝘭 𝘰𝘧 𝘵𝘩𝘦 𝘭𝘦𝘴𝘴𝘦𝘦 𝘪𝘯𝘥𝘦𝘧𝘪𝘯𝘪𝘵𝘦𝘭𝘺 𝘰𝘳 𝘧𝘰𝘳 𝘱𝘦𝘳𝘪𝘰𝘥𝘴 𝘸𝘩𝘪𝘤𝘩 𝘵𝘰𝘨𝘦𝘵𝘩𝘦𝘳 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘧𝘪𝘳𝘴𝘵 𝘱𝘦𝘳𝘪𝘰𝘥 𝘰𝘧 𝘵𝘩𝘦 𝘭𝘦𝘢𝘴𝘦 𝘢𝘮𝘰𝘶𝘯𝘵 𝘪𝘯 𝘢𝘭𝘭 𝘵𝘰 𝘯𝘰𝘵 𝘭𝘦𝘴𝘴 𝘵𝘩𝘢𝘯 10 𝘺𝘦𝘢𝘳𝘴.”
While ownership remains with the lessor, the lease is registrable in the Deeds Office in terms of section 77 of the Deeds Registries Act 47 of 1937 if it exceeds ten years. Once registered, it becomes a real right, binding third parties and affording the lessee substantial security and tradability. The lessee may often erect buildings, sublet, or even sell their leasehold interest, subject to the terms of the lease.
These leases are attractive for developers and buyers because they often reduce upfront land costs and avoid transfer duty. However, buyers must exercise caution as they are not acquiring ownership, and the reversion of rights at the end of 99 years may raise legal and financial implications for successors as the 99- year lease would need to be renewed after the 99 year period.
Although legally valid, 99-year leases can raise some legal concerns. However this model also challenges conventional ideas of 'ownership' in the public’s mind, making it essential for conveyancers to clearly explain the implications to clients.
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