99-year lease
Encyclopedia
A 99-year lease was, under historic common law
, the longest possible term of a lease
of real property
. It is no longer the law in most common law jurisdiction
s today, yet 99-year leases continue to be common as a matter of business practice and conventional wisdom
.
.
In the law of several US states, a 99-year lease continues to be the longest possible contract for realty by statute
, but many have enacted shorter terms and some allow infinite terms.
The 99-year lease concept has been more common under the civil law
regime
s when it comes to concessions of territory
: most concessions last for 99 years.
, to Hong Kong New Territories
from China from 9 June 1898 to 1 July 1997. The Guantanamo Bay Naval Base
started as a 99-year lease in 1903 from the first president of Cuba
to the United States. The Lend-Lease program of the 1940 was enabled by 99-year lease of British bases on several islands (Gander International Airport
in Newfoundland
).
Grants of Leases linked from the ACT Planning & Land Authority.
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
, the longest possible term of a lease
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
of real property
Real property
In English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
. It is no longer the law in most common law jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
s today, yet 99-year leases continue to be common as a matter of business practice and conventional wisdom
Conventional wisdom
Conventional wisdom is a term used to describe ideas or explanations that are generally accepted as true by the public or by experts in a field. Such ideas or explanations, though widely held, are unexamined. Unqualified societal discourse preserves the status quo. It codifies existing social...
.
The law
Under the traditional American common law doctrine, the 99-year term was not literal, but merely an arbitrary time span beyond the life expectancy of any possible lessee or lessorLessor
Lessor is the name of two places in the United States:*Lessor, Wisconsin*Lessor Township, Minnesota...
.
In the law of several US states, a 99-year lease continues to be the longest possible contract for realty by statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
, but many have enacted shorter terms and some allow infinite terms.
The 99-year lease concept has been more common under the civil law
Civil law (legal system)
Civil law is a legal system inspired by Roman law and whose primary feature is that laws are codified into collections, as compared to common law systems that gives great precedential weight to common law on the principle that it is unfair to treat similar facts differently on different...
regime
Regime
The word regime refers to a set of conditions, most often of a political nature.-Politics:...
s when it comes to concessions of territory
Concession (territory)
In international law, a concession is a territory within a country that is administered by an entity other than the state which holds sovereignty over it. This is usually a colonizing power, or at least mandated by one, as in the case of colonial chartered companies.Usually, it is conceded, that...
: most concessions last for 99 years.
Historic examples
The British famously had a 99-year lease, or concessionConcession (territory)
In international law, a concession is a territory within a country that is administered by an entity other than the state which holds sovereignty over it. This is usually a colonizing power, or at least mandated by one, as in the case of colonial chartered companies.Usually, it is conceded, that...
, to Hong Kong New Territories
New Territories
New Territories is one of the three main regions of Hong Kong, alongside Hong Kong Island and the Kowloon Peninsula. It makes up 86.2% of Hong Kong's territory. Historically, it is the region described in The Convention for the Extension of Hong Kong Territory...
from China from 9 June 1898 to 1 July 1997. The Guantanamo Bay Naval Base
Guantanamo Bay Naval Base
Guantanamo Bay Naval Base is located on of land and water at Guantánamo Bay, Cuba which the United States leased for use as a coaling station following the Cuban-American Treaty of 1903. The base is located on the shore of Guantánamo Bay at the southeastern end of Cuba. It is the oldest overseas...
started as a 99-year lease in 1903 from the first president of Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
to the United States. The Lend-Lease program of the 1940 was enabled by 99-year lease of British bases on several islands (Gander International Airport
Gander International Airport
Gander International Airport is located in Gander, Newfoundland and Labrador, Canada, and is currently run by the Gander Airport Authority. Canadian Forces Base Gander shares the airfield but is a separate entity from the airport.-Early years and prominence:...
in Newfoundland
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...
).
Notable examples
- The Salvador Dali MuseumSalvador Dalí MuseumThe Salvador Dalí Museum in St. Petersburg, Florida, United States, houses the largest collection outside Europe of the works of the artist Salvador Dalí and is located on the Downtown St. Petersburg waterfront.-History:...
in St. Petersburg, FloridaSt. Petersburg, FloridaSt. Petersburg is a city in Pinellas County, Florida, United States. It is known as a vacation destination for both American and foreign tourists. As of 2008, the population estimate by the U.S. Census Bureau is 245,314, making St...
secured a 99-year lease in 2007. - Highway 407 in Toronto, OntarioOntarioOntario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
was leased to a consortium of investors under a 99-year lease in 1999. - Via Silverstein Properties and Westfield America, Larry SilversteinLarry SilversteinLarry A. Silverstein is an American businessman, and real estate investor and developer in New York City.Silverstein was born in Brooklyn, and became involved in real estate, together with his father, establishing Silverstein Properties...
made a $3.2 billion bid on the World Trade CenterWorld Trade CenterThe original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...
in January 2001. Silverstein was outbid by $50 million from Vornado RealtyVornado Realty TrustVornado Realty Trust is a New York based real estate investment trust. It is the inheritor of real estate formerly controlled by companies including Two Guys and Alexander's.- History :...
. However, Vornado soon withdrew and the World Trade Center was secured by Silverstein on July 24, 2001. The lease agreement applied to One, Two, Four, and Five World Trade Center, and about 425,000 square feet (39,500 m2) of office space. Upon leasing the properties, Silverstein insured the World Trade Center, and after the September 11 attacks which totally destroyed the property including Six, and Seven World Trade Center. Silverstein sought for $7.1 billion (two times the insured price) after the destruction because the two plane crashes were interpreted as "two occurrences".
- The Australian Capital Territory in Australia. All land held by tenure in The ACT and CanberraCanberraCanberra is the capital city of Australia. With a population of over 345,000, it is Australia's largest inland city and the eighth-largest city overall. The city is located at the northern end of the Australian Capital Territory , south-west of Sydney, and north-east of Melbourne...
is held under 99 year lease provisions.
Grants of Leases linked from the ACT Planning & Land Authority.
See also
- Larry SilversteinLarry SilversteinLarry A. Silverstein is an American businessman, and real estate investor and developer in New York City.Silverstein was born in Brooklyn, and became involved in real estate, together with his father, establishing Silverstein Properties...
- Lend-leaseLend-LeaseLend-Lease was the program under which the United States of America supplied the United Kingdom, the Soviet Union, China, Free France, and other Allied nations with materiel between 1941 and 1945. It was signed into law on March 11, 1941, a year and a half after the outbreak of war in Europe in...
- Rule against perpetuitiesRule against perpetuitiesThe common law rule against perpetuities forbids some future interests that may not vest within the time permitted; the rule "limit[s] the testator's power to earmark gifts for remote descendants"...
- 999-year lease999-year leaseA 999-year lease is, under historic common law, essentially a nominal lease of property for life. The lease locations are mainly in Britain, her former colonies and Commonwealth. The longest possible term of a lease of real property is legally a 99-year lease....
- Australian Capital TerritoryAustralian Capital TerritoryThe Australian Capital Territory, often abbreviated ACT, is the capital territory of the Commonwealth of Australia and is the smallest self-governing internal territory...
- CanberraCanberraCanberra is the capital city of Australia. With a population of over 345,000, it is Australia's largest inland city and the eighth-largest city overall. The city is located at the northern end of the Australian Capital Territory , south-west of Sydney, and north-east of Melbourne...