Comercial Leases

A ground lease involves a landowner granting a long-term lease on a parcel of land to someone so they can construct a building on it. In return the landowner then receives a steady long-term income flow in the form of a ground rent.

The Introduction. The beginning of the lease agreement should contain the name of the landlord and tenant, as well as a statement of the agreement into which they are entering. Rent. Deposit. Taxes. Property Insurance. Utilities and Amenities. Remodeling and Improvements. Repairs and Maintenance.

The lease should state who is responsible for arranging and paying for buildings insurance. With most leases, the landlord arranges and pays for buildings insurance but then passes on the costs (or an appropriate proportion, in shared premises) either as part of the service charge or as a separately itemised charge.

Disadvantages. The most significant downside to owning a home on leased land relates to building equity. For many people, home ownership is a major source of wealth. With a leased-land property, you risk losing all of your equity at lease expiration, depending on the terms of the surrender clause.

Ground leases can provide great investment opportunities for people who want to deploy capital in real estate while never having to think about property management.The value of the rental stream and the landlord's position will typically end up well below half the value of the land and building as a whole.

Name the parties. A simple rental agreement form needs to name the parties signing the lease and where they live. Describe the premises. Define the term of the lease. Set how much rent is owed. Assign a security deposit amount. Finalize the lease.

A ground lease is an agreement between a landowner and a tenant, in which the tenant leases land for a new build. The lessee is the owner of the building only, and is responsible for all the expenses and costs associated to constructing and maintaining a business location on a leased piece of land.

A ground lease involves leasing land for a long-term periodtypically for 50 to 99 yearsto a tenant who constructs a building on the property.Many landlords use ground leases as a way to retain ownership of their property for planning reasons, to avoid any capital gains, and to generate income and revenue.