FAQs

01: How will you market my property?

We will discuss a marketing strategy with you.

02: What is Flying Freehold?

With flying freehold property, it is a general rule of law that if you own a piece of land, you own everything above and below that land. In the past, therefore, this precluded flats being able to be conveyed as freehold property. To circumvent this rule of law, the "Loi (1991) sur la copropriete des immeubles batis" ("the Flying Freehold Law") was passed in 1991. This now enables you to purchase a "lot" which entitles you to exclusive ownership and enjoyment of a flat, garage or parking space together with co-ownership of, and rights over, common areas at the property. Flying freehold property must have an Association of Co-Owners of which the Purchaser of any flat is automatically a member. The Association is created by a Declaration of Co-Ownership, which effectively sets out the rules and obligations of the Association and each of its members. It is the Association’s duty amongst other things, to insure the block of flats/apartments as a whole with each individual owner "having to. insure their contents. Members contribute towards the Association’s expenses by the payment of a Service Charge.

Flying freehold purchases are also passed before Court on a Friday afternoon. As they are freehold transactions, Housing consent is again required and stamp duty is payable upon both the purchase price and the amount borrowed if registered.
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03: What is Freehold?

This is the most common form of property and includes houses, buildings, plots of land, fields, etc. Housing consent is required for the purchase of freehold property and stamp duty is payable according to both the purchase price and any registered borrowing from your bank. Completion of the purchase is by way of a Contract passed before the Royal Court of Jersey on a Friday afternoon.
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04: What is Leasehold?

 

This is somewhat unusual but can, nevertheless, still arise. Essentially, an owner of a property gives a long-term Lease (commonly 99 years) to the original Lessee of the property. The Lessee may then assign the benefit of the Lease to the new Lessee for a purchase price. Leases of longer than nine years must be passed before Court. Again, Housing consent is required and stamp duty is calculated upon the remaining term of the Lease. The creation of leasehold interest was most commonly used by the States in respect of their housing developments in the 1960’s.
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05: What is Share Transfer?

 

Despite the coming into effect of the Flying Freehold Law, a number of properties are still purchased by share transfer. With share transfer property, a Company owns the property comprising of the flats/apartments and the Purchaser buys shares in the Company which entitle them to exclusive rights of ownership of a particular flat/apartment with rights over the common areas. The Company must have Articles of Association which set out the rules of the Company and the rights and obligations of each shareholder. Companies also often produce further House Rules and Regulations dictating what can and cannot be done at the premises by each shareholder. As with flying freehold transactions, it is usual for the Company’s Articles of Association to provide for the insurance of the property by the Company with each shareholder being responsible for insuring the contents of their flat.

Housing consent is not required for a share transfer transaction and unqualified persons can, therefore, purchase a share transfer flat/apartment. Consent must, however, be obtained from Housing to occupy the premises. Further, share transfer transactions are effectively completed upon the signing of Share Vending Agreements and the exchange of the purchase consideration monies for the appropriate Share Certificate. Therefore, the transaction does not go to Court and no stamp duty is payable on either the purchase price or any loan.
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