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. 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. 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.
When you’re a developer, the most important thing is to understand how the ground lease operates. 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. Choosing the best duration for the ground lease will be important. 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.
One thing that would be very important is to make sure that you have been able to understand clearly more about the ground lease. One thing that you need to realize is that there are major differences between the subordinated ground lease and the unsubordinated ground lease. The differences are going to be there openly for you to learn more about that. 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. There is also the aspect of getting some very specific 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. 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.