ground lease

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Ground lease

A lease of land, as opposed to a lease of a building.

Ground Lease

A lease of real estate. A ground lease differs from other types of leases, such as those where one rents an apartment or a factory. Generally speaking, one may use a ground lease to occupy a piece of land and make improvements to it. For example, one may build an office on the land. Ground leases are important to some investment vehicles in Islamic finance, notably sukuk al-ijara.

ground lease

A long-term lease of land in which the tenant will erect improvements at its own expense. Not a desirable arrangement from the tenant's point of view, but sometimes the only way to gain access to extremely valuable real estate in an excellent location.The owner may be unwilling to sell,or the owner may have received the property by gift or deed (such as a church or university) and be prohibited from selling for some period of time. At the end of the lease term, the improvements become the property of the landowner.

References in periodicals archive ?
Property owners with ground leases can submit their information on the website for a free, no obligation evaluation of their lease.
Bank ground leases with twenty or more years of lease term remaining experienced compression
One critical element is that the ground lease be financeable by the developer's lender.
Ground leases are almost always much longer than standard leases of existing space, running anywhere from 20 to 99 years.
Companies often unwittingly sacrifice their ability to make future improvements to their property by neglecting to make their ground lease financeable.
Gerard Dougherty, the attorney for the Drysdale family said the ground lease holders ended up with a bigger sum than the landowners because the city had to consider lost rental income.
6, 2015 /PRNewswire/ -- Landmark Dividend LLC, one of the nation's leading ground lease acquisition companies, recently acquired 190 acres in New Jersey, which is currently being leased to a solar energy project.
Landmark Dividend LLC said it is offering cash incentives to business partners who refer ground lease acquisition opportunities.
8220;The market for bank ground leases is at historic low levels,” said Randy Blankstein, President of The Boulder Group.
Ground leases are less prevalent in the outer boroughs and more complicated than a sale, but it made the most sense for our client.
The varied and unique challenges presented in the valuation of long-term ground leases with rent reset or rent review clauses have not been extensively addressed in appraisal literature.
As Fannie Mae became more cautious, its mountain of paperwork grew and those complex ground leases got more difficult to sift through.