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The procedure for lease renewal at the expiry of 99years in the case of a leasehold title?

Just before the expiry of your lease make sure you write a letter to the Commissioner of Lands informing him that you are the current holder of the lease and you are requesting for its renewal. You also must undertake to pay the charges attributable to the renewal. The letter will be filed at records and a request dispatched to the land officer of the respective land registry where the Certificate of...

Change of Use and Controlling developments

The Physical and Land Use Planning Act, 2019 (previously Physical Planning Act (Cap 286) now repealed) change of use: “The owner of Plot LR NO. AAA/AA located wherever is proposing to change the use from agricultural to residential (multi-dwelling) subject to approval by AAAA Council. Individuals, institutions etc. with objections to the proposal are requested to forward them in writing within fourteen...

Of Certificates and Ballots

Did u know that the Kenyan Government only recognizes title deeds and allotment letters as bona-fide documents to show proof of ownership of land? And by the way, from our previous lessons, the allotment letter is just an offer and the expectation after receiving the offer is to accept it by way of paying the charges therein. So, when you purchase a plot from a land buying company and all you receive...

Joint Ownership

Joint ownership of property will come in two forms: Joint proprietorsProprietors in Common When two or more people purchase land, they can be registered on the Title as either of the above. Where two or more parties register as Joint Proprietors each registered owner does not have a specific share of the property - all owners have an undefined share in the whole of the land. The right of...

Of minors and registration of land in trust

You probably don’t trust your wife/husband that much and you think it is wiser to register that property in the name of the kid. In the new act (Land Registration act 2012) the issue of minor’s registration is dealt with in section 47: “The name of a person under the age of eighteen years may be entered in the register to e n a b l e the minor’s interest to be held in trust and shall be...

Good debt vs bad debt

When you see the word debt, what comes into your mind? Is it the HELB loan, the soft loan you took from a friend, the goods unpaid for in the shop in your estate, mortgage or that credit card debt that keep following you? We have two forms of debt that are fundamentally different and can never be painted with the same brush. Read on and you might discover how debt can actually be good for you, when...

Leveraging in Real estate

Leverage (debt) magnifies outcomes. What does this mean? To illustrate how leverage works in a real estate investment, we'll take the following investment parameters (The figures are hypothetical but not so far from reality, just to put the points across): •Construct 5 units for sale each at construction cost of 5M (inclusive of land) •Financing at 14% interest (service interest during...

Mitigating against Leverage Risks

The higher the leverage, the higher the risk but as we saw last time the higher the profit margin. We all agree that in Kenya, a developer’s world only makes a lot of sense when the concept of OPM (Other Peoples’ Money) is utilized to the maximum. So then along the same line of thinking, developers in Kenya are clever enough to utilize the less risky of the OPM. Off plan sales The idea is of...

In Real Estate Location is almost everything. Learn to locate good location

When it comes to Real Estate Investment, it is often said that the secret to success is location, location and location. Where you invest is generally more important than how much you invest. There is a very strong link between where your real estate investment is located and the financial success you will enjoy. There are several examples of individuals with access to a lot of money and who also...

Succession Planning

We have seen it happening. Some hardworking chap struggles to set up a business that becomes and empire. Soon after transition, the empire collapse like a stack of dominos. Or you could have noticed a cycle in family fortunes that change from generation to generation. One generation finds nothing to inherit, and then they struggle so hard and by the time they are going they leave massive wealth. The...

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