A Guide on Everything 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. One of the biggest challenges for people who are developers is that they may not have the amount of money that is needed in order 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. The most important thing is to make sure that you have consider these because it is able to help you to get good results. 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. With the ground lease, you’ll basically develop the land for the owner. Handling the land back over to the owner will be possible after you’re done with the project. It is highly recommended to make sure that you’re going to consider a ground lease that is going to have the best duration. Most of the time, it is recommended that you choose between 20 and 44 years. You have to also get more information about the different types of the ground lease.
One thing that would be very important is to make sure that you have been able to understand clearly more about the ground lease. There is the unsubordinated ground lease and the subordinated ground lease. It is always a very good idea for you to choose the one that is going to be best for you because you want to always get the best results. 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. 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.
For the land owners, this is going to be an opportunity to get steady income. Apart from that, your also still going to have some level of control whenever you decide to give them a ground lease. 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.