What You Need to Know about a Ground Lease
Getting a piece of land for development is not an easy thing, lots of factors usually come into play. Purchasing the land is obviously an option that is there but you may not really have the money to make that possible for you. Getting a ground lease is always the best solution in order to continue with the project. Your results will always be very good because of that. With the ground lease, you are able to benefit because if you’re interested in selling it in the future, you can do that but at the moment, you can get some money from the ground lease.
Understanding everything about the ground lease will be the most important thing. The moment you decide to get the ground lease, the development that you’ll be doing on the land will be for the owner. When the tenant is done with the use of the land, they are able to handle the land back over to the owner. For your ground lease, you have to choose the right kind of duration. Most of the time, it is recommended that you choose between 20 and 44 years. Different types of the ground lease will be there and it will be a good idea to understand the differences.
The amount of information that you’re getting about the ground lease will be important for you. The subordinated ground lease is one of the main options and there is the unsubordinated. The differences are going to be there openly for you to learn more about that. When it comes to this, and number of advantages will be there. Even though you may not have that huge amount of money, you can now be able to secure that land and start using it. The down payment on many of these lands is usually very reasonable. It is also important to know that this can give you an opportunity to take advantage of tax advantages.
You also want to get the ground lease especially because it is going to provide you with an opportunity to get steady income especially when you are their own. With giving the ground lease, the owner is also going to have some level of control. Over this project, you are going to have much more control. Sticking to the guidelines will also be very important for you.