This article about the coming Strata Title Act reforms in WA has been supplied by Landgate.
Western Australian landowners can look forward to more leasing options through reforms to the Strata Titles Act 1985, which propose to allow for leasehold strata.
Introducing leasehold strata over freehold land will give a landowner the ability to create a strata scheme for a fixed-term of between 20 and 99 years and then sell long-term leases of lots within that strata scheme.
This will be beneficial for land owners who are not in a position to sell, but wish to have land developed – such as a church or university.
Buyers of the leasehold strata lots will acquire a long-term lease of that lot, which they will be able to sell without needing the landowner’s consent. Buyers of leasehold strata lots will be issued with a Certificate of Title for their lot and will be able to obtain a mortgage over the leasehold lot.
Leasehold schemes can be created by a freehold landowner who does their own construction and development, or by a developer that the freehold landowner has leased the land to, with the intention of developing a leasehold scheme.
Every leasehold strata scheme will operate with a strata company, which will be made up of the people who own the leasehold strata lots. The leasehold strata company will operate under the by-laws for the leasehold scheme. The leasehold strata company will be responsible for the control, management and maintenance of the building and common property, of the leasehold strata scheme.
Every leasehold strata scheme will have an expiry date, just like a normal lease.
For more information on this aspect of the WA Strata Title Act reforms, please view this video by Landgate.
Find out more about the Western Australia strata reforms.