Ground Lease

Ground lease or land lease is a type of property lease in which only the land is rented. Under this agreement, the tenant or the lessee can use the land for a long, fixed term, as well as develop a structure or building on the land. But since the landlord holds the title to the ownership of the property, once the agreement expires, the tenant cannot claim any ownership of whatever structure or improvements he or she might have developed or built on it.

Land  Property Development

For example, landowner A gives a 30-year ground lease to B, who is planning to use the land for a certain business venture. B agrees to pay a certain amount of money to A annually for using his land. At the end of the 30-year rental agreement, A rightfully takes total control and complete ownership of the land and whatever improvements that B might have done on it.