Have you ever heard of leased land?

This is common in Huntington Beach, Newport Beach, and Costa Mesa.
In these cases of leased land, there is a lease fee on top of the HOA dues for condos, or the purchase price of a house.

Usually when you buy a home, you buy the building plus the land underneath it. This defines the term fee simple ownership. Owning the property solely. When it is a leased land, someone owns the land underneath and someone else owns the building. If you see a listing that says “Land Type: Fee” this means it is a fee simple ownership, it does not mean that there are fees nor is it a lease. 

There are a few pros and cons to leased land.
1. Pro- Usually homes on leased land cost less, therefore you can afford a nicer house.
2. Con- It can be more difficult to get obtain a loan on a leased land property. Lenders will want to be certain that the lease period does not run out before the loan is fully paid off. (If you want a 30 year loan, there will need to be over 30 years left on the land lease).
3. Con- You may run into similar issues when trying to resell your home in the future.

If you are interested in a home that is on a leased property and would like to be put in touch with lenders to obtain financing for this type, please contact me today.

Love your Home, Love your Life.

Leah

 

Leased Land

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