Ground Rent Lease
A ground rent lease is a long-term land lease (50-99 years) where the tenant pays rent based on land value, constructs improvements at their expense, and surrenders the improvements at expiration. Also called a land lease or ground lease.
vs. Fee Simple Purchase
- Lease: No land ownership, ongoing rent, term expires
- Purchase: Full ownership, one-time price, perpetual
- Lease advantage: lower initial cost, tax-deductible rent
- Lease disadvantage: improvements revert, harder financing
Tenant Obligations
- Pay ground rent on time
- Construct per lease specifications
- Maintain improvements in good condition
- Pay property taxes and insurance
- Surrender at expiration per lease terms
Landlord Obligations
Deliver possession, maintain quiet enjoyment, keep fee title current, execute NDAs, and cooperate with tenant financing.
Related Terms
- Estate for Years — Leasehold estate
- Encumbrance — Ground lease obligations
- Contract — Lease agreements
Barnes Walker Commercial Real Estate
Barnes Walker's attorneys structure ground rent leases for Florida landowners and development tenants. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 83, Part II
The Florida Residential Landlord and Tenant Act governs lease agreements, security deposits, maintenance obligations, and the eviction process.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC