Leasehold Tenure System in uganda

Leasehold Tenure System in uganda : Land Tenure refers to a relationship whether legally or customarily defined among people, asindividuals or groups with respect to land, land tenure is an important part of social, political and economic structures. There are a number of land tenure categories in Uganda including Leasehold Tenure System, this type of tenure is contracted out by owners or holders of customary, freehold, mailo or public land.

Leasehold Tenure System is the most commonly used land tenure system in Uganda by foreign investors, foreigners may obtain contracts for leases of the land up to 99 years with the opportunity for renewal. According to the Land Act of 1998, Section 40 (2). “A lease of five years or more acquired by a non-citizen shall be registered following the Registration of Titles Act”.

The Registration of Titles Act of 1924 lays out the procedures for registering leaseholds.

In Uganda, long-term leases can be used as collateral to obtain a commercial loan. Public land controlled by the District Land Board is available for leasing by a District Land Board to an applicant under the following conditions.

• Vacant and there are no conflicting claims to it
• Occupied by the applicant and there are no adverse claims to the occupation
• Where the applicant is not in occupation but has a superior equitable claim to that of the occupant.
• Where the applicant is not in occupation but the occupant has no objection to the application.
• In case a Ugandan who holds land in Freehold or Mailo tenure loses their citizenship, their land automatically changes to a lease of 99 years. This is because a non citizen/foreigner can only own land in the leasehold tenure.

How to Acquire Leasehold Land Title in Uganda

There are several steps followed to acquire a leasehold land title in Uganda as listed below by www.moorlandconsults.com

Step 1

The applicant for a leasehold title must have fully completed Forms that are 8,10,18 and 23. A set of 3 authentic deed plans, 3 Passport Photographs, Receipts of Payment and a forwarding letter requesting for a Leasehold title signed by the District Land Officer of the respective District where the land is located.

Step 2

The Applicant presents a full set of original documents and a photocopy of the same to the Department of Land Administration for checking, the photocopy is stamped “Received” and returned to the applicant.The Applicant then checks with the Department of Land Administration after 10 working days to confirm their approval or rejection and is given a letter advising him or her on the fees to be paid.

Step 3

Once the documents are approved, the documents are forwarded to the Department of Land

Registration for preparation and issuance of Lease Agreements. The applicant has to wait for 10 working days to pick up the Lease Agreements for signing and sealing by the Chairperson and the Secretary of the respective District Land Board and to Stamp Duty which is 1% of the Premium and Ground Rent.

Step 4

At this stage, the applicant presents fully signed and sealed lease documents by the District

Land Board Chairperson and Secretary and lease agreements embossed by URA. The

applicant is given a photocopy of the lease agreements stamped “Received”.

Step 5

The applicant presents the photocopy given to him or her by the Department of Land

Registration stamped “Received” and identification documents on collecting the Leasehold Title.

The applicant signs for the Title and the Photocopy are stamped “Returned” on completion.

How to Renew a Lease in Uganda

All land leases in Uganda expire on the last day of the contractual period.

Some leases are renewed automatically while others must be renewed subject to grant upon requests depending on the lease terms.

The only way to renew a lease in Uganda is when it comes to an end, however should

you want to change anything in an ongoing lease. You may go for lease variation or extension.

Converting Leasehold into Freehold in Uganda

A lease that was granted to a Uganda Citizen out of formerly public land can be

converted to freehold.

Also, a lease of land exceeding one hundred hectares can be converted into freehold,

the owner of the land is required to pay the market value as determined by the chief

government valuer for the new interest before the conversion becomes effective and the money paid shall become part of the Land Fund.

For any Land related issues, please contact www.moorlandconsults.com for assistance.