Have you ever come across with terms like change of use, extension of use, extension of lease or renewal of lease? This article summarizes the definitions and differences of these terms according to physical and land use planning act, 2019 amendment. Additionally, it provides a recommendation of when to apply for renewal of lease.
In this article we are going to cover briefly on:
Change of use
This means any alteration in the use, purpose or level of activity within any land or building that involves a material change that results in a use that is completely different from the previous use and which will require development permission or any development that is out of character as under the set Regulations, a zoning plan or an approved development plan, or under the lease conditions; The Change of Use is required when—
- the proposed project includes a significant change of the registered use of the land and constituting of a change of more than twenty per cent of the registered use of the land based on the plot coverage and plinth area; and
- the existing registered use of land is not in accordance to the approved plan or the zoning regulations.
Extension of use
This means additional use other than that registered on the land while maintaining the dominance of the existing registered user or the land. The extended user should be compatible with the existing user including the character of the neighbourhood; Extension of Use is required when the proposed development includes a change of registered land use not exceeding twenty per cent in instances where a developer intends to comply with any revised physical and land-use plans and land-use zoning regulations.
Extension of lease
This is a process by which the lessee, before expiry of the lease, seeks an additional unexpired term to that lease. A lease extension should state that the original agreement being extended, name both parties involved in the contract, and state when the lease begins and ends. The parties are supposed to know how a lease extension works and how it compares to other options at the time it ends, so that they are able to decide whether the lease extension is right for them. I would recommend this article for more information.
Renewal of lease
Lease renewal is a new lease agreement. Under a lease renewal, there is a legal instant in time between the expiry of the original term and the commencement of the renewal term. Unlike a lease renewal, an extension of the original lease is a continuation of the original lease, without interruption.
When to apply for renewal of lease
The National Land Commission is required to notify a person to whom a lease (lessee) is granted by registered mail, five (5) years before expiry of the leasehold that the lease is about to expire. The notice indicates the date of expiry and notifies the lessee of their pre-emptive right to apply for extension.
The National or County Government is required in cases of non-extension of leases to give the lease holder notice of at least three (3) years before the expiry of the lease, and a copy of the same issued to the Land Commission
NOTE: Where the lease expires without prior notice by the Land Commission to the lessee, the lessee may be required to apply for a renewal of lease.
Recommendations
Lease extension or renewal and change or extension of use can be difficult processes. We recommend you get professional help from Planners and Surveyors with experience in this area.
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