Labour guarantees certainty and peace of mind

Owen Bonnici (Minister for National Heritage, the Arts and Local Government.)

Last week, as the Minister for Culture, Lands and Local Government, I launched the Temp25+ scheme. The goal of this program is to help more Maltese and Gozitans become full owners of their homes by paying off, at a fair, just and reasonable price, the ground rent on properties built on government land.

Temp25+ will offer families certainty and peace of mind. This scheme is aimed at residents, families, and current or prospective property owners. Temp25+ does not apply to commercial projects.

WHY

For many years, families living in properties built on Government land subject to temporary emphyteusis had expressed the desire to become full owners of their homes. While these families and individuals had the option to redeem the ground rent, this has not always been possible, especially when a house has been converted into a small block of apartments or when the land was planned to become a residential house but remained unbuilt. Through Temp25+, the wishes of these families will now be addressed effectively and in a smoother manner.

MAIN RESIDENCE

The first example is that of an applicant's main residential property.  In this case, Temp25+ enables the applicant to redeem the ground rent of their property over a period of 5 years. The redemption price will be capped at a maximum of Euro 16,000. In the case of garages, or parking spaces, which are attached to the residential property, or form part of the emphyteutic concession of the same residence, they may also be redeemed for the price of Euro 1,000 per garage.

If the property, or redeveloped units, or garages, or parking spaces are sold within 15 years of the redemption, the applicant will be required to pay an additional payment of 3% of the selling price of each property. In this case, the application fees have been substantially reduced, Euro 500 per residence (unit), and Euro 150 per garage, or parking space.

OTHER PROPERTY

Anyone who wants to redeem the leasehold of a residential property, which is not the ordinary residence, or which is a holiday residence, or a vacant residence, or a residential property that has been developed into several units, may do so. There is no limit on the amount of property that can be redeemed. The redemption price will be capped at a maximum of Euro 19,000. There is also no limit on the number of garages or parking spaces, with the redemption price fixed at Euro 2,000 per garage. If the property, or redeveloped units, or garages, or parking spaces are sold within 15 years of redemption, the applicant will be required to pay an additional payment of 3% of the selling price of each property. In this case, the application fees are Euro 1,000 per residence (unit), and Euro 250 per garage, or parking space.

UNDEVELOPED SITES

The scheme also pre-empts prospective issues referring to the redemption of ground rent by prospective buyers such as first time buyers buying on plan. 

Those who have emphyteusis on an undeveloped site can apply to redeem the ground rent by submitting the plans of the proposed development once the final development permit is granted. In this case, each residential unit can be redeemed for the price of Euro 7,000, and each garage, or parking space, for the price of Euro 2,000.

Applicants will be required to allocate a portion of the ground rent, which they will continue to pay to the Land Authority for any development of a commercial nature, as this type of development does not qualify for redemption purposes under this scheme.

A redemption certificate is issued to the applicant based on the approved plans, and if further development is permitted, the last recognized emphyteusis must pay for the redemption of the extra development that has been made, and an amended redemption certificate is issued, for a fee of Euro 1,000. If the property, or redeveloped units, or garages, or parking spaces, are sold within 15 years of their redemption, the applicant will be required to pay an additional payment of 3% of the selling price of each property. In this case, the application fees are Euro 1,000 per residence (unit) for the first 5 residential units, and Euro 250 for each additional unit. For each garage or parking space, the sum of Euro 250 is payable.

BENEFITS

Temp25+ is designed to give homeowners certainty and peace of mind. No distinction shall be made between emphyteutic concessions before and after 1979, whilst redemption prices are being significantly reduced from the previous schemes.

People who have applied under past schemes will be allowed to switch to TEMP25+ if this is more relevant to them. In case any payments have already been made, these will be taken into consideration and deducted from those due under the TEMP25+ scheme, where applicable.

Special consideration is being given in the case of property transfers between members of the same family, individuals aged 65 and over, transfers in favour of people with disabilities, and transfers in favour of first-time buyers are being exempted from paying an additional 3% on the final sale price.

Also, each unit in a residential block can be considered independently, and applications under the various categories can be submitted by the same applicant.

The Land Authority will retain the right to protect properties of historical value, and in these cases, different rules will apply.

Through the TEMP25+ scheme, we are allowing families to become full owners of their homes. This fair and transparent scheme will give peace of mind and certainty to families who have, or will have, their homes built on government land.

Beppe

I would like to salute the young Beppe who participated in this year's final of Zecchino d'Oro. 

His participation was thanks of course to his talent but also through the collaboration between PBS and Arts Council Malta.  I am very grateful for all those who made this participation possible. 

We want the doors of opportunity open as much as possible on our creatives whatever their age. 

Congrats Beppe! I am sure that this experience will be fruitful in the beautiful career that awaits you!