A 99-year land lease — sometimes called a long-term land lease or a perpetual lease — is a formal legal agreement in which a landowner grants a tenant the right to occupy a defined portion of land for a period of up to 99 years.
In return for that right, the tenant pays regular rent to the landowner throughout the term of the lease.
The critical point: the landowner retains full ownership of the land throughout. Nothing is sold. The land title does not change. The landowner simply receives income from a portion of their land in exchange for the documented right of the tenant to occupy it.
Ninety-nine years is a common term for long-term land leases because it is long enough to give the tenant meaningful security — making the arrangement genuinely attractive to tenants — while remaining a finite term that the landowner and their estate can plan around.
Shorter terms (25, 50, or 75 years) can be negotiated, but longer terms generally produce better income for the landowner because tenants are willing to pay a premium for long-term security on their occupancy.
A standard residential rental agreement typically has a fixed or periodic term (6 months, 12 months), covers the dwelling, and involves the tenant renting the property from the owner.
A 99-year land lease is fundamentally different:
| Standard Rental | 99-Year Land Lease | |
|---|---|---|
| What is leased | The dwelling | A defined portion of land |
| Term | 6–12 months, periodic | Up to 99 years |
| Income duration | Short-term | Decades |
| Tenant security | Low | Very high |
| Owner's title | Unchanged | Unchanged |
| Registered on title | No | Yes |
The lease is registered as an interest on the land title — protecting the tenant's right to occupy, and protecting the landowner's rights as the owner.
In the context of the Buy My Backyard programme, the income structure works as follows:
Because the lease is long-term and formally documented, the income is stable and ongoing — not subject to the short-term uncertainty of standard rental agreements.
Yes. Long-term land leases are a fully recognised legal instrument in all Australian states and territories. They are used extensively in retirement village structures, land lease communities, residential developments, and commercial arrangements across Australia.
The specific legislative framework governing long-term residential land leases varies by state:
Each state has its own framework covering the rights and obligations of landowners and tenants under long-term lease arrangements. Independent legal advice — from a solicitor familiar with your state's legislation — is strongly recommended before entering any long-term lease.
No — not in the way that subdivision does. Your property title is unchanged. You remain the registered owner of your full property throughout the 99-year lease.
The lease is registered as an encumbrance on the title — similar to how an easement (such as a right of way) is recorded. This means anyone doing a title search on your property will see the lease, but your ownership is unaffected. You can still sell the property; the lease transfers to the new owner, who then receives the income.
The 99-year lease is attached to the land — not to you personally. When you sell the property, the lease transfers to the new owner as part of the land title. The new owner steps into your position as the landowner under the lease and continues to receive the rental income.
This is typically disclosed to prospective buyers through the standard conveyancing process. In many cases, a property with a formal, income-generating secondary dwelling on a long-term lease is an attractive asset for buyers looking for an income-producing property.
In the residential context, 99-year land leases are most commonly used in:
The Buy My Backyard programme applies the same legal structure that has been used in large-scale land lease communities for decades — but makes it accessible to individual homeowners with a single backyard.
The free property assessment is the first step. We review your specific property — lot size, backyard configuration, council zone, and local planning controls — and advise you on whether it qualifies for the programme. No cost, no commitment, response within 48 hours.
This article provides general information. Land lease legislation varies by state and individual circumstances vary by property. Seek independent legal advice before entering any lease arrangement.
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