Katlego Sekhu
During Friday’s Open Line, a listener raised a question about property ownership at Waterfall Estate, asking whether residents truly own the land they live on.
“They’re on a 99-year lease. What happens to the structure after 99 years?” the listener asked.
Sizwe Dhlomo clarified that the lease is perpetually renewable – a key detail that ensures long-term security for residents.
The most important aspect of the Waterfall Estate lease agreement is that while it is a 99-year lease, it is designed to renew automatically.
More significantly, when the property is sold or inherited, the lease term resets to 99 years. This mechanism effectively makes the leasehold interest perpetual, as long as the leaseholder or their successors continues to meet the conditions of the lease, such as paying the relevant fees.
This model aligns with the family trust’s intention to retain ownership of the farm and avoid subdivision or sale of the land. By offering long-term, renewable leases, the trust can maintain control over the estate while also generating income from its development.
In terms of ownership, the individual who builds or purchases a home on the leasehold property owns the physical structure itself. The lease grants them the right to occupy and use the land for the duration of the lease.
Crucially, because the lease renews with each transfer of ownership, the structure does not revert to the landowner (the family trust) at the end of 99 years in the way a fixed-term lease traditionally would.
Instead, the rights to the structure remain with the current leaseholder, ensuring continuity of ownership and peace of mind for homeowners at Waterfall Estate.
To hear the full Open Line, listen to the podcast.
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