Buying or selling a home involves a lot of things, it also raises questions. In this column ‘Ask Bob’, real estate expert/broker Bob Bartikoski of RE/MAX Paradise Homes Bonaire answers a real estate question from a reader. This time:
Question: What does “long lease” mean? I want to own my property, but it seems many of the house and condos I like the most are listed as long lease.
Long-term land lease, also referred to as long lease, is common on Bonaire, as it is on some other islands. To get the full picture, you’ll want the specific details of the lease on the property you are interested in, but here are the basics.
The government of Bonaire issues long leases (generally 60 years) and unlike a normal lease, the lessee receives a proprietary right, which means the lessee is allowed to use the real estate as if he or she was the owner. The lessee pays the annual property taxes on the property and can mortgage the property, build on it, or sell it. If the property is sold, the new owner assumes the lease terms.
The lease does not start over each time the property is sold, so you may see one home with a lease that is subject to end in 50 years, or one that ends in 20 years. At the end of the lease, the government has the option of renewing the lease or paying the lessee for the fair market value of the property, including any buildings on the land.
The fee is determined per square meter basis, and by the location of the property. The long lease cost is is determined by the government, and by the terms of the lease.
My wife and I own houses on both owned land and leased land here on Bonaire, and like many owners, the only difference we notice is that we pay an annual lease fee for our leased property in addition to our property taxes.
Please email me directly if you need more information on a specific property at info@bonairehomes.com. Bonaire: +599-717-7362. Call for free from the US: 1-866-611-7362