A Guide to Land Lease Expiration and Renewal in Ghana
In Ghana, a 99-year lease is a long-term contract that grants a person the right to use the land for that fixed period. At the end of the term, a legal principle known as “reversion” typically means that the land, along with any property or structures built on it, reverts to the original owner (the lessor).

However, the Land Act, 2020 (Act 1036), has introduced key provisions to protect the interests of Ghanaian citizens and ensure a smoother process for lease renewals. Here’s a breakdown of the key considerations:

1. Reversion of the Land
Upon the expiration of the lease term, the legal interest in the land and all improvements on it (such as a house, commercial building, or farm) reverts to the lessor. This principle, known as quicquid plantatur solo, solo cedit (“whatever is affixed to the soil belongs to the soil”), is a fundamental part of land law.

2. Right of Renewal for Ghanaian Citizens
This is the most crucial provision of the new Land Act. For a Ghanaian citizen, the law provides a guaranteed right to renew a lease upon its expiration. You do not lose the land outright. Instead, you are entitled to enter into negotiations for an extension of the lease with the original grantor or their successors.

Bare Land: If the land was leased as a bare plot, and you, as a Ghanaian citizen, have developed it for residential purposes, or created a farm with perennial crops, or built a commercial or industrial property, the lease is subject to automatic renewal for the same duration as the original lease.

Terms of Renewal: The renewal is not free. The law states that the new lease will be at a “reasonable price,” and the terms, including the new duration and ground rent, are to be negotiated between the parties. When determining the new terms, the Act requires that any improvements you have made to the land must be taken into consideration.

3. The Situation for Non-Ghanaians
The Land Act, 2020, and the 1992 Constitution limit the interest a non-Ghanaian can have in land to a maximum of 50 years. Unlike Ghanaian citizens, the law does not provide an automatic right of renewal for non-Ghanaian lessees. For a non-Ghanaian to be able to renew their lease, the original lease agreement must have an express clause guaranteeing the right to renew. If such a clause exists, the renewal is subject to new terms agreed upon by both parties.

4. The Negotiation Process
The renewal process involves negotiating a new lease. The new terms, including the premium (an upfront lump-sum payment) and the ground rent, must be mutually agreed upon. This is where the value of your improvements becomes a significant factor. If the parties fail to agree on terms, the dispute can be taken to a court for resolution.

5. Importance of Timely Action
It is essential to be proactive and begin the renewal process well before your lease is due to expire. The Land Act does not specify a timeline, but it is prudent to start negotiations a few years in advance to avoid a situation where your lease expires before a new one is secured.

Summary of Key Points
You don’t lose the land immediately. The law provides a guaranteed right for Ghanaian citizens to apply for a lease renewal.

Renewal is not automatic for non-Ghanaians, unless expressly stated in the original lease.

The new lease will have new terms and will involve a cost that should be negotiated, taking into account the value of the improvements you have made.

The Land Act, 2020 (Act 1036), is the governing law and provides significant protection to leaseholders.

Professional legal advice is highly recommended to navigate the renewal process and ensure your rights are protected.

When a 99-year land lease expires, the property ownership typically reverts to the freeholder or landowner. However, what happens can vary depending on the jurisdiction and specific laws in place. Here’s a general overview of the potential outcomes:

• Reversion of Ownership: The most fundamental consequence is that all legal rights to the property, including any buildings or structures on the land, revert to the freeholder. This is known as “reversion.”
• Lease Extension or Renewal: In many cases, the leaseholder has the option to renew the lease for an extended period. This process often involves negotiating a new agreement with the freeholder and paying a “premium” or fee. This is the most common outcome, as it allows the leaseholder to maintain their rights to the property.
• Statutory Rights: Some countries have laws that provide specific rights to leaseholders, such as the guaranteed right to a lease renewal for citizens. These laws are designed to protect leaseholders from losing their homes and investments.
• Collective Sale (En-bloc): In some regions, owners of leasehold properties (such as in a condominium or apartment building) may collectively sell their property to a developer before the lease expires. This allows them to receive compensation for their homes.
• Loss of Property: If the leaseholder does not take action to extend or renew the lease, they can lose their legal rights to the property. The value of a property with a short remaining lease can depreciate significantly, making it difficult to sell or mortgage.

It’s important to note that the specific details and procedures for lease expiration and renewal can differ significantly based on location. For example, laws in Ghana or Singapore may differ from those in the United Kingdom or the United States. It is always recommended to seek an expert