What is a Land Lease?
A land lease is a type of financial arrangement in which the ground under a structure is leased, rather than sold to the builder, meaning that the land and the structure are owned independently. There are several reasons to enter a land lease contract, but it occurs most commonly when a real estate investor wishes to retain a piece of land, but not necessarily put energy into developing it. In this instance, the investor might work with a developer to create a land lease contract, allowing the developer to build a structure and rent or sell it, with the understanding that the land is leased and does not come with the building. This type of arrangement is more common in urban areas, and is often associated with cooperatives or tenant-owned buildings. Generally, the contract for a land lease runs for at least 50 years. If the land lease is near termination, the land owner is usually willing to renew it, providing that the building has been profitable and well maintained, although the amo
A. When somebody owns a home and rents the land underneath it. A land lease community generally has sites that are rented by tenants who own the home on the site. A land lease home is a permanent structure. For more information about land lease commumnities see, http://www.ltb.gov.on.ca/en/Key_Information/158000.html Thanks for reading!
