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 ?
The 12th property, 42nd Street retail, is expected to close after resolution of the ground lease rate reset dispute with the City of New York," LaRue said.
95 percent and was comfortable with the hotel being on a ground lease.
The leased fee interest is entitled to receipt of land rent and other financial benefits during the lease term, plus the reversion of the land and improvements, if any, when the ground lease expires.
For landowners, a ground lease can be appealing because it offers a long-term, low-risk income stream while they retain ownership of a property.
Based in Annapolis, Maryland, Matthews will work to provide capital to consumers and businesses seeking to liquidate ground leases to cell towers, billboards, wind turbines, solar farms and fiber optic networks.
Cap rates for bank ground lease properties reached a new historic low
Wouldn't this be insurable interest in order to cover the loss of ground lease income?
One critical element is that the ground lease be financeable by the developer's lender.
Under a ground lease, a business leases vacant land (often called "dirt") from a property owner, constructs its own building, and pays for all of the costs of operation, including taxes, insurance, snow removal and landscaping.
The transaction's asset pool is composed of a participation right in the form of fixed-amount claims against the rent collections under four ground lease agreements where the underlying properties are four plots of land located in Taipei City's Xinyi District.
The move has caused many home sellers there to breathe a sigh of relief, after a potential ground lease fee hike cast on doubt whether Fannie Mae would underwrite the loans there.
The deal, which sees the ground lease extended until 2103, was negotiated by Leamington-based agents Evans Hardy Bromwich and Wareing & Co.