Leases
Ground lease
A long-term lease of land on which the tenant builds
The tenant owns the improvements for the term while the landlord keeps the land, and at expiry the improvements usually revert with it. Terms run for decades for a practical reason: nobody finances a building on land they hold for five years.
How the exam asks about it
Also called a land lease. The examinable feature is the split between ownership of the land and ownership of what stands on it.
Quick check: Ground lease
One question. Pick an answer to see the explanation.
Which term is being defined: “A long-term lease of land on which the tenant builds”?
Related terms
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