Freehold or Leasehold

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Posted (edited)

I have been of the understanding that a condo purchased by a foreigner can be held freehold in his name ( or that of his beneficiaries ) in perpetuity - am I correct in this assumption ?

Has there been any recent changes to the laws that restrict this freehold to leasehold ?

If the land the development is build on is held in a 60/40 corporation as the law requires does the ownership of the condos need to reflect this ratio also ?

 

 

 

Edited by insite
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Posted (edited)
28 minutes ago, insite said:

Has there been any recent changes to the laws that restrict this freehold to leasehold ?

Oddly enough the Law has not been changed but it now Stands that there can not be a freehold on Condo Buildings in that they are on 50 year Max leases. Should anyone here actually own a Condo beware of this Part of the Law that could stop your passing on the Condo at the end of the said 50 years

 To answer you post  further we Foreigners can't hold a freehold as this would be us owning the Land which I am sure you will know we cant.

 The Corporation law is as such that any Condo building has to be at the stated 60/40 in favour of the Filipino.

A little light reading on this ;

http://www.lexmundi.com/images/lexmundi/practicegroups/realestate/survey4/philippines.pdf

 

Edited by Jack Peterson
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Posted

Most condos would be no more than a slum after 50 years so not worth worrying about unless you are looking to buy one with only a few years left.

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Posted
14 hours ago, Gary D said:

Most condos would be no more than a slum after 50 years so not worth worrying about unless you are looking to buy one with only a few years left.

This is my thought as well.

 

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Posted
5 hours ago, Old55 said:

This is my thought as well.

 

That would be my concern buying a condo here, even if we look after our unit the likelihood is many or even most  of our neighbours will not. The law of diminishing returns applies I'd say.

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Posted

Even if kept in a good decorative state a lot of the infrastructure is built into the fabric of the building, water, electric, lifts etc. All pretty knackered by then.

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Posted
4 minutes ago, Gary D said:

Even if kept in a good decorative state a lot of the infrastructure is built into the fabric of the building, water, electric, lifts etc. All pretty knackered by then.

Surely not, that's what the usually exorbitant HOA fees are mean to cover! :tongue:

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Posted
2 minutes ago, hk blues said:

Surely not, that's what the usually exorbitant HOA fees are mean to cover! :tongue:

It would probably be cheaper to pull down and rebuild than replace the lifts.

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Posted
1 hour ago, Gary D said:

It would probably be cheaper to pull down and rebuild than replace the lifts.

Indeed.

At least with a house, you always have the land so the asset doesn't diminish to zero.  

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