Leasehold

Sharmlover · #1 (**permalink**) 25th July 2009, 09:05 PM

When I buy my property in Sharm, it will be leasehold. Does that mean it can ever be taken away from me at any time?. Also, when the 99 year lease is up and by this time the propery might still be in my family can the leasehold be automatically renewed?
The reason I'm also asking that friends of mine, here in Scotland, are thinking of buying, but unlike me they will still be in the uk. They live in a small village where a lot of property was on lease for hundreds of years, then suddenly they were forced to give the properties back to the laird for which he paid them a price (which was not very much). They are worried that this could happen in Sharm. They only want to buy the property to use themselves and to rent out as holiday rental.

Would be grateful for any help on this. Thanks

MaidenScotland · #2 (**permalink**) 26th July 2009, 06:23 AM

I have no idea how the building laws work here but personally I would never buy on a lease not even in the U.K . I wonder if your friend is from my area because this renewing of the lease made big news locally. Holiday homes were built on land on a 30? year lease and the buyers were told, yes you will be able to renew your lease at a reasonable price. The land changed hands and when the leases were up the new prices were horrendous and many people couldnt afford them and the homes built on them weren't worth the price of a new lease. To cut a long story short, the new land owner got back his land and a holiday home on it for a few thousand pounds. The landowner didn't break any laws doing this and the UK is regulated far more than here.
On another point I am wondering what makes people buy out here? Can you tell me why you bought? I am just curious as I have reservations about buying here due to the political climate, what happens when/if the Muslim brotherhood get in? They have stated that no alcohol will be sold here to muslims but they said they would allow tourist, but that may change. I just wonder what would happen to the holiday rentals then or indeed the re sell price?

queenie40something · #3 (**permalink**) 26th July 2009, 10:02 AM

Hi our lawyer advised us to put our childrens names in the contract. They could then ' sell ' to their children to obtain a new 99 year lease. If you sell the property then the new owner pays 10,000 ( as per our contract ) for a new 99 year lease.

There is loads of info on the sister website Property Community http://www.propertycommunity.com/for...an-lawyer.html where we have a resoident lawyer who answers questions. He has been really busy the last couple of months but he said he will be available to answer questions again from next month.

Sharmlover · #4 (**permalink**) 26th July 2009, 01:50 PM

Quote:

Originally Posted by MaidenScotland

I have no idea how the building laws work here but personally I would never buy on a lease not even in the U.K . I wonder if your friend is from my area because this renewing of the lease made big news locally. Holiday homes were built on land on a 30? year lease and the buyers were told, yes you will be able to renew your lease at a reasonable price. The land changed hands and when the leases were up the new prices were horrendous and many people couldnt afford them and the homes built on them weren't worth the price of a new lease. To cut a long story short, the new land owner got back his land and a holiday home on it for a few thousand pounds. The landowner didn't break any laws doing this and the UK is regulated far more than here.
On another point I am wondering what makes people buy out here? Can you tell me why you bought? I am just curious as I have reservations about buying here due to the political climate, what happens when/if the Muslim brotherhood get in? They have stated that no alcohol will be sold here to muslims but they said they would allow tourist, but that may change. I just wonder what would happen to the holiday rentals then or indeed the re sell price?

Hi,
Thanks for your reply. I'm from the north east Moray Firth area. The homes I mentioned, were on leasehold for two hundred years, and handed down or sold to others.

Many people have bought in Sharm on leasehold as you can't buy freehold unless you are Egyptian. My Egyptian husband doesn't want the propery in his name as he wants any propery I buy with my money to go back to my family in Scotland, and he also doesn't want anyone thinking he is just after conning me as some have a bad name for that. But you can't always judge them all by the few.

I just want to know how the leasehold works after the 99 years, that's all.

I'm buying in Sharm as I just love Egypt, Sharm, the people, and of course my Egyptian husband. Although I am a very patriotic Scot, I love it when I am in Sharm and made up my mind to go and live there, instead of him coming over here, as he said the cold would probably kill him...lol. There is and has been for many centuries a connection between Egypt and Scotland. Especially when I saw last year a postcard in Edinburgh airport of a camel in a desert saying "welcome to Scotland" lol.

I think the Muslim "brotherhood" is already there, as it is a Muslim country. And as for selling alcohol to only the tourists, I know that many Egyptians who drink beer. My husband has the occasional one, so I think that notion isn't true. Maybe that is the way it started in Sharm but I don't think it is like that now.

We can't compare Egypt with the troubles in the Middle East. Egypt is a country with a good relationship with the UK and is not in the Middle East but in Africa/Asia. They are lovely people and if the radical Muslims came here, which they already have as there have been bombings in Luxor, Cairo and Sharm, then that doesn't mean that Egyptians are going to rally round them, as the majority of Muslims want peace. But we have had more trouble and bombings in the UK than in Egypt. Look at all the bombings in London and the Glasgow Airport attempted bombing. Then there were the terrorists who were, thank God, caught before they blew up 10 aircraft on the way to the USA.

There is a huge ex pat colony in Sharm, so a lot of people obviously love it out here. I have talked to a Scot who said she will never go back to Scotland again as this is where she is at home now.

I think that if we all lived in fear and scared of what the future might bring, then we would do nothing in our lives. I could get killed in a terrorist attack in London or Sharm. But that is not going to stop me going to live in Egypt and be with my husband. My family will have free holidays and i'll fly home about twice a year.

Home is where the heart is and mine is in Scotland and Sharm. But Sharm is where I want to be.

Thanks very much for your opinion on the matter though, it's nice to see what other peoples views are.

MaidenScotland · #5 (**permalink**) 26th July 2009, 07:44 PM

Hi,
Its nice to hear that you have found a good man here.
I know the muslim brotherhood are here, they are a political party. I have lived here for many years but what I am saying is they have said if they get in power they will ban alcohol sales but they might relent and let it be sold to tourists. Egypt needs tourists, and I would think that the majority of tourists would stop coming if they could not have a beer and wonder what that would do to the apartments that are bought to let as holiday homes and the resale value of any houses bought and this is why I am reluctant to buy.

queenie40something · #6 (**permalink**) 26th July 2009, 07:58 PM

Sharm is a tourist resort so very much doubt they would ban alcohol same in Hurghada. Tourists dont just come to Sharm to have a drink! Alot of tourists are divers and dont drink much the night before a dive for obvious reasons. We have bought our apartment to enjoy ourselves. We bring our own drink with us. Will they also ban shisha bars and smoking? No very much doubt it.

Sharmlover · #7 (**permalink**) 27th July 2009, 12:59 AM

Quote:

Originally Posted by MaidenScotland

Hi,
Its nice to hear that you have found a good man here.
I know the muslim brotherhood are here, they are a political party. I have lived here for many years but what I am saying is they have said if they get in power they will ban alcohol sales but they might relent and let it be sold to tourists. Egypt needs tourists, and I would think that the majority of tourists would stop coming if they could not have a beer and wonder what that would do to the apartments that are bought to let as holiday homes and the resale value of any houses bought and this is why I am reluctant to buy.

Hi
My apologies for my ignorance. I did not realise they were a political party. I thought it was just slang for radical muslims..lol

Are they a bit like the BNP in the UK? A small party with a loud mouth which will never get voted in or are they bigger than that?

MaidenScotland · #8 (**permalink**) 27th July 2009, 06:21 AM

No problems lol, yes the muslim brotherhood are big in Egypt and are actively trying to get seats in parliment. Mubarak has outlawed them but when the american president came he insisted that members were allowed to go to his speach, if memory serves me right I believe he insisted they have 5 seats for the speach. Here in Cairo I probably see more of the political side of things than you down on the red sea resorts. In the last two years I have seen the scarf being worn more and more by young girls and an Egyptian friend of mine has suddenly started wearing it at the age of 40, I asked her why and her reply was Peer pressure.
I do not want to get into a debate about the rights and wrongs of this, I live in a Muslim world and I am quiet happy to live by the laws of the land

MaidenScotland · #9 (**permalink**) 29th July 2009, 04:36 PM

I have made a few enquiries and the law used to be that you had to be an Egyptian to buy freehold, this law was brought in to protect poorer Egyptians who might have seen their properties bought up by rich Gulf Arabs. The law was then changed and if you bought substantial property it could be bought for freehold, still in keeping with helping poorer Egyptians keep hold of their homes. My boss owns the apartment I am in, it's not leasehold and he is not Egyptian but it is a very substanial apartment and maybe he is over the threshold for lease/free hold. I have a friend who owns a substantial property in el Gouna freehold bought from Orascom. This information comes from an Egyptian architect and may not be 100% accurate but probably better information than you would get in the street.
I

queenie40something · #10 (**permalink**) 29th July 2009, 05:10 PM

Hi there are no problems with a non Egyptian buying outside Sinai but there are certain restrictions that apply that do not apply to Sharm for instance if you bought outside Sinai there is a 5 year restriction on you being able to sell your property, you can only buy 2 properties and they must not exceed 4000 sq m each etc.