Long Lease land, what does it mean?
Just under half of the habitable area of Bonaire is long lease land. But what does this actually mean? And why does it matter when you want to buy a house on Bonaire? Let us help explain it.
Definition of Long Lease.
Long lease, or long-term land lease is the right to hold or to use someone’s land/property for fixed or unlimited time, normally against annual payment, in addition to ground tax. The holder of the long lease has the right to use the land/property as if he/she was to be the owner, although limitations are often included in the deed.
How does long lease work on Bonaire for buying?
The long lease land on Bonaire is owned and given by the government and can be given to residents or legal entities for various purposes. The land will remain the property of the government and lease will only be granted on loan for a certain period, usually for a period of 60 years. To qualify for a plot of long lease land for housing, the applicant must complete and submit a form to the Spatial Planning & Development Department. Because there are not many of these long lease lots available, there is a long waiting list. Other conditions apply for commercial plots.
And what about selling a house with long lease?
Since June 2020 the rules of selling property with a long lease hold have changed. Before then, it could be sold whether build or undeveloped, the only condition that there was a wind and watertight building on it. Now, there must be approval before selling a house on long lease land. The building will then be tested whether it was built in accordance with the building permit. The only way to sell the property, is with this permit. And please note, that this could take up to 2 to 3 months for permission to be granted.
On our website you can see which of our properties are long lease. Any questions? Don’t hesitate to ask!