By Johnathan Kwing, Lawyer, Schnauer & Co.
With the DIY season coming to an end we need to find alternative ways to increase the value of our property without having to do the hard yakka in the midst of a cold winter or COVID-19.
One way of doing this is converting your property title plan to freehold.
Why should you do this? Freehold are the most attractive titles to a buyer. They are the Marilyn Monroes and Frank Sinartas of titles. By converting your title you can make a quick easy increase in the value of your property without having to lift a finger.
A freehold title allows you or a potential buyer to have complete ownership over that piece of land. As the owner of a freehold property you will have freedom to build and renovate like you were on TV3's The Block (as long as you are still following Council regulations). You’ll never have to pay ground rent, service charges or admin fees, because you will be your own boss! Lastly, you can end that relationship you never really wanted with your needy neighbour.
For selling purposes freehold title is far more attractive to a potential buyer because they know exactly what they are buying i.e. everything on that land plus they’ll have all the perks listed above.
This is compared to leasehold land which allows you to own the property but not the land underneath it. With leaseholds if you want to make any structural changes you’ll most likely need to get your neighbour(s) consent, which they can reasonably withhold.
Likewise with a body corporate title: with a body corporate title, you need to get approval from everyone in the body corporate before you can make changes to your house. It’s virtually impossible.
To change your title to freehold, certain conditions have to be met, such as:
If you have any queries, or would like more information feel free to pop in and chat to me or anyone else at Schnauer and Co Lawyers to see if your property is eligible for an easy (insert $$$) increase.
