A lease is a contractual agreement between a group of people where for a period of time, the owner of a property “loans”out their property to the other party; the lessee. In this period, as agreed by both parties, an amount is paid to the lessor; owner of the property.
Residential and Commercial properties , Vehicles and Lands are among the properties that can be leased. However in Ghana, apartments and lands are the usual properties leased.
How Long Can You Lease For?
Every lease has a beginning date and an end date. In Ghana, it could be as short as 1 year or however long as agreed by parties involved. Commonly, the farthest lessees are given is 99 years. It can go farther than that depending on the negotiation established between both parties.
Quao Realty’s recent luxury property; 233 Boulevard, located in the tranquil town of Cantonments offers potential lessees a maximum of 60 years lease agreement with flexible payment plan.
However, Article 266 of the 1992 constitution limits the lease interest period for non-Ghanaians to not more than 50 years at a time.
What must be included in a lease.
According to Kwame Ankapong Yeboah; a real estate consultant, a lease agreement must in the least include;
Names of the parties of the agreement.
The starting date and duration of the agreement.
Identification of the specific property being leased (usually depicted by the site plan).
Conditions for renewal or non-renewal and other covenants.
Specific consideration (a lump sum, or periodic payments such as ground rent) for granting the use of this object.
According to lands commission, before you apply for a lease of state land; property owned and controlled by institutions of the state, you need to submit the following;
Application letter signed by the assignor(s) /sub lessor(s) or his/her/their authorized representative with a Power of Attorney.
A copy of the draft assignment/sublease document
A copy of applicant’s title document (optional)
A copy of applicant’s valid photo ID
A copy of evidence of legal existence (certificate to Commence business and Incorporation) and certificate of annual renewal (where assignee/sub lessee is a company) plus a copy of photo ID of Company’s representative
A copy of company’s resolution to assign/sublet (where assignor/sub lessor(s) is a company)
An approved site plan clearly showing the subdivision (if part transfer) and a copy of old site plan (if applicant has earlier processed a document with an unapproved plan)
A subdivision approval from Town and Country Planning Department with an extract from the layout (If part transfer)
Reading a lease agreement can be a bit lengthy but before you sign a property document, thoroughly review the clauses to understand or consult professionals during the transaction process.