What Is Lease Land – A Simple Explanation
Of course. you can give or sell your home on leased land just as easily as on fee land. However if you are concerned about your heirs 65 years from now, there are four realistic questions you should ask yourself: Will they really want a 65 year old home when the average life of most California residences is estimated at less then 50 years? Considering that most residences change ownership about every five years (which would be more then 10 turns of ownership during the life of your lease) is the home really likely to stay in your family for 65 years? If you have a savings of $206/month (2,472 per year) by leasing land vs. purchasing, over the life of a 65 year lease, your savings would total $160,680 even it if earned no interest. If you kept this monthly savings in an account paying 10% annual interest, your savings would exceed $1,250,000 over 65 years ( and even more if interest were compounded monthly). Wouldn’t that be a better way to take care of your heirs?
Downloadable PDF: Lease_land_explained.pdf