What You Need to Know about a Ground Lease
There are many factors that come into play when you want to get a piece of land for development. One of the biggest issues is sometimes, you may not have the kind of money that is needed to purchase the land. One of the best solutions that you can use in order to continue with your development project is to lease the ground. You’ll realize that you’re going to get very good results because of that. Some people also have pieces of land that they are interested in selling in the future and therefore the moment, the ground lease give them some money.
Understanding everything about the ground lease will be the most important thing. The owner will give the land over to the person who wants to get the ground lease and, that allows them to develop the land. Handling the land back over to the owner will be possible after you’re done with the project. 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. There is the unsubordinated ground lease and the subordinated ground lease. It would be critical for you to understand the differences between the two so that you can choose the one that will be great for you. There are a number of advantages you’ll be able to get in relation to that. For the purposes of development, you are able to secure the land immediately never you decide to get the ground lease. Most of the time, the ground lease is not even going to require a very huge down payment. It is also important to know that this can give you an opportunity to take advantage of tax advantages.
For the land owners, this is going to be an opportunity to get steady income. The owner is still going to have some level of control the moment you decide to look into this as well. Another thing that will be important is to make sure that you have been able to get much more control over the project. You’ll also have to be very careful about how you are going to stick to the guidelines that will be given.