Ground leasing for Housing Affordability an ancient land tenure reinvented

You can save $30,000 to $100,000 off the list/market price of the house you want to buy though ground leases

In times and places of escalating land costs, removing land from the speculative market may be one way to stem its rising costs in the housing cost equation.  Bifurcation of property ownership – separating ownership of the land from ownership of the housing atop it ‐ has been touted as an effective land reform measure that can engender durable affordability. A ground lease ties the landowner to the title owner of the improvement .  Ground leasing’s roots are embedded in English common law dating back to feudalism, the Norman Occupation, and the Magna Carta.  An ancient land control device, ground leasing today has been reinterpreted as a modern land reform strategy that can convert subsidy to a form of community equity..  An ancient land tenure form reinvented, ground leasing through innovative models that strive for perpetual affordability continue to evolve.

There are six million residential homes with ground leases in England and four million in the United States –   Ground lease developments in the Phoenix Area Are Briarwood in Scottsdale and Casitas East and Casitas Tempe in Tempe- Both were developed over 35 years ago and are good examples of ground lease properties selling and reselling and also of appreciation.

Affordability:  Large chain stores like Starbucks and Whole Foods use ground leases to expand their empires. This allows them to grow without saddling the companies with too much debt

Under Arizona law when you buy a home that has a ground lease on it – you (The lessee) have an absolute right and title to the home and an absolute right to be on the land for the next 99 years. The lessor has no rights of ownership for the first 99 years except to collect the monthly leased fee rent.

For more detailed information on the benefits of Ground lease please go to our Learn more about ground Rents Tab (above)