Crown land market value pricing policy for existing commercial leaseholders People with commercial leases issued prior to October 31, 1991 are given the opportunity to convert their leases (rented property) to grants (ownership), provided the land is developed and the grant application is received by the department on or before October 31, 1996. The cost of the grant will be set at assessed or fair market value with credit being given for lease rentals paid, less an administration fee of $25 for each year the lease is in effect. People with commercial leases issued after October 31, 1991 are given the opportunity to convert their leases to grants, provided the land is developed and the grant application is received by the department on or before the fifth anniversary of the date the lease was issued. The cost of the grant will be the same as described above. Leaseholders whose lease does not contain a rent review clause may continue to pay the rental rate specified in the lease for the remainder of the lease term. However, should the leaseholder not take advantage of this opportunity and choose to convert the lease to a grant after October 31, 1996, the cost of the grant will be the same as described above, except credit will not be given for rentals previously paid. Leaseholders whose lease contains a five year rent review clause may continue to lease at the rate specified in the lease until the rent review anniversary. At that time, the lease rentals will be adjusted to 20 per cent of the fair market value. After paying the new rental rate for five years, the leaseholder will be entitled to receive a freehold grant at no further cost. Credit will not be given for rentals paid prior to the rent review adjustment. All applications will be subject to the payment of an application processing fee of $107 (GST included) and a legal document fee of $200. Crown land market value pricing policy for
residential leaseholders
People with leases issued after October 31, 1991 are given an opportunity to convert their leases to grants, provided a residence is constructed on the land and they apply for a grant on or before the fifth anniversary of the date the lease was issued. Example: A person whose lease was issued on July 16, 1993 has until July 16, 1998 to apply for a grant. The cost of the grant will be $1,500 or the assessed value of the land, whichever is more advantageous to the leaseholder. Previously paid lease rentals will be credited towards the grant cost. Leaseholders who do not take advantage of this opportunity can continue to pay the rental rate specified in the lease for the remainder of the lease term. However, should the leaseholder choose to obtain a grant at any time after October 31, 1996, the cost will be the assessed/appraised value of the land in place at the time of application. Where assessment/appraisal information is not available, the cost will be set at $1,500. Credit will not be given for lease rentals paid. All applications are subject to the payment of an application processing fee of $107 (G.S.T. included) and a legal document fee of $200. Crown land market value pricing for existing
cottage leaseholders
People with leases issued after October 31, 1991 will be given an opportunity to convert their leases to grants, provided a cottage is constructed on the land and they apply for a grant on or before the fifth anniversary of the date the lease was issued. Previously paid rentals will be credited towards the grant cost. Example: A person whose lease was issued on February 21, 1994 has until February 21, 1999 to apply for the grant. The cost of the grant will be $2,125 (i.e. $2,500 less $375 rentals paid). Leaseholders whose leases contain a five year rent review clause may continue to pay the rental rate specified in the leases until the rent review anniversary. At this time, the lease rentals will be adjusted to 20 per cent of the assessed/appraised value of the land. Where assessment/appraisal information is not available, rentals will be set at a minimum of 20 per cent of $3,000 for waterfront property and a minimum of 20 per cent of $2,500 for land not fronting on water. Example: a person now paying $75 per year may have the lease rental increased to $600 or $500 per year. After five years paying the new rental rate, the leaseholder will be entitled to receive a freehold grant at no cost, provided the cottage is constructed. Credit will not be given for lease rentals paid prior to the rent review adjustment. Leaseholders whose lease does not contain a rent review clause, may continue to pay the rental rate specified in the lease for the remainder of the lease term. However, should the leaseholder not take advantage of this opportunity and choose to convert the lease to a grant after October 31, 1996, the cost of the grant will be the assessed/appraised value of the land in place at the time of the grant application or the minimum rates of $3,000 for waterfront property and $2,500 for land not fronting on water. Credit will not be given for rentals paid . All applications will be subject to the payment of an application processing fee of $107 (GST included) and a legal document fee of $200.
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