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What is a Fee Farm Grant?

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  • 16-03-2013 3:45am
    #1
    Ventrus
    Registered Users Posts: 8 ✭


    Hello all, I'm in the process of purchasing an apartment (First time buyer). A lot of the preliminary work has been done and it's getting to a point where things will need to be signed. I'm happy enough at how it's progessing but I have been sent a copy of something called a Fee Farm Grant which I wasn't expecting.

    I am finding it very difficult to get any straight forward (that is, plain English, not legal speak) definition as to what this is, or what it will mean for me if the purchase is finalised. It has very strange terminology referring to leases, fees and conditions that is very difficult to comprehend.

    Though I understand that this is probably more for a solicitors' review during the purchase process, it is not something I feel comfortable being in the dark about.

    I will refer to my solicitor regarding this of course, but a long weekend is comming up and I wouldn't mind some sooner understanding and piece of mind.

    Any responses with a simple explanation of what this is from someone who has come across this before would be greatly appreciated.


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    #2
    Victor
    Registered Users Posts: 78,404 ✭✭✭✭Victor


    A fee farm grant essentially means that you are buying a very long lease (typically 100-10,000 years) - you aren't buying the property outright. The lease likely has some restrictions - in the case of apartments, this primarily relates to how you interact with the owner's management company (OMC) and the other owners / residents.

    Depending on the particular lease, you are likely to have to pay an annual fee. For apartments, this can run to several thousand euros per year.

    This http://en.wikipedia.org/wiki/Fee_farm_grant#Reform seems to indicate that new fee farm grants are legally dubious.


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    #3
    Ventrus
    Registered Users Posts: 8 ✭Ventrus


    Victor wrote: »
    A fee farm grant essentially means that you are buying a very long lease (typically 100-10,000 years) - you aren't buying the property outright. The lease likely has some restrictions - in the case of apartments, this primarily relates to how you interact with the owner's management company (OMC) and the other owners / residents.

    Depending on the particular lease, you are likely to have to pay an annual fee. For apartments, this can run to several thousand euros per year.

    This http://en.wikipedia.org/wiki/Fee_farm_grant#Reform seems to indicate that new fee farm grants are legally dubious.


    Thanks for that, reading it again and keeping this in mind has made it a bit clearer. I will be getting more clarification soon from my solicitor.


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