Definition of Ground lease:
Usually a long-term (often 99 years) lease of land for erecting buildings or making land improvements. And the end of lease, the land and all structures and enhancements revert to the owner of the land. Also called land lease.
A ground lease is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.
A ground lease indicates that improvements will be owned by the property owner unless an exception is created and stipulates that all relevant taxes incurred during the lease period will be paid by the tenant. Because a ground lease allows the landlord to assume all improvements once the lease term expires, the landlord may sell the property at a higher rate. Ground leases are also often called land leases, as landlords lease out the land only.
How to use Ground lease in a sentence?
- Tenants who otherwise who can't afford to buy land can build property with a ground lease, while landlords get a steady income and retain control over the use and development of their property.
- Ground leases commonly take place between commercial landlords, who typically lease land for 50 to 99 years to tenants who construct buildings on the property.
- A ground lease is an agreement in which a tenant can develop property during the lease period, after which it is turned over to the property owner.
Meaning of Ground lease & Ground lease Definition