A lease is an interest over property granted by the owner of the property (“Landlord”) to a person (“Tenant”) to use the property for some time and the Tenant has the right to exclusive possession of the property.
Leases for less than two years that are not renewable cannot be registered. A lawyer can negotiate the terms of the lease and be sure to confirm the term and whether you want an option to renew the lease at the end of the term.
Leases for a period of over twenty-five years are deemed to be transfers (at least for purposes of registration and stamp duty). Stamp duty of these leases is chargeable four percent (4%) in municipalities or cities and two percent (2%) in other areas.
The registration of lease, whether long term or short term does not entitle the Tenant to sublet the lease without the consent of the landlord.
The extension and Renewal of Leases is governed by the Land (Extension and Renewal of Leases) Rules, 20l7. The rules also provide for the manner and timelines within which a landowner is to be notified of impending expiration.
A lessee can apply for an extension at any time before the expiry of a lease. The application is made to the National land Commission through the office of the Commission in the respective county by submitting Form LA 22.
Notification of Approaching Expiration of a Lease.
The National Land Commission is required to notify the lessee within five years before the expiry of a lease of the impending expiration. The notification is done by registered post and any other means provided under the regulations
If the lessee does not respond to the notification within one year from the date of service, the Commission is required to publish the notification in two newspapers of nationwide circulation and require the lessee to respond within six months from the date of the publication.
A lessee can apply for renewal of a lease to the National Land Commission. The application is made through the office of the Commission in the respective county, in Form LA 23.
The national government or county government shall within ninety days of receipt of the application under regulation either approve the renewal of the lease for a specified term with such terms and conditions as may be specified; or not approve the renewal of the lease and give the reasons thereof.