Land records · Parcel maps · October 5, 2026
What Is a Ground Lease? Owning a Building, Not Land
What is a ground lease? A long-term lease of land where the tenant builds or owns the improvements. Terms, how it shows in records, and buyer cautions.
What is a ground lease? It is a long-term lease of land, often 50 to 99 years, in which the tenant has the right to build on, use, or own the improvements while the landowner keeps ownership of the ground itself. Ground leases are common for commercial buildings, but homeowners encounter them too, in some resort communities, campus or tribal land, manufactured home communities, and certain cities. When the lease ends, the land and often the buildings revert to the landowner, unless the lease says otherwise. This page is general land-records background, not legal advice.
Ownership on a ground lease
| Party | Typically owns |
|---|---|
| Landowner (lessor) | The land, in fee simple |
| Tenant (lessee) | A leasehold interest, plus the buildings during the term |
Compare this with fee simple ownership, where one owner holds both land and buildings indefinitely.
Key terms to read
- Length of term and any renewal options.
- Ground rent, including how and when it increases, such as fixed steps, inflation adjustments, or periodic reappraisals.
- Use restrictions.
- Who owns improvements at the end of the term.
- Assignment and subletting rights, important when selling.
- Financing rights, such as whether the tenant can mortgage the leasehold.
- Default and termination provisions.
How ground leases appear in records
The lease itself or a shorter memorandum of lease is often recorded with the county recorder, so it shows up in title searches. Assessor records may list the landowner as owner of the land and the tenant as owner of improvements, or show a separate leasehold account. Title insurance can be issued on a leasehold interest.
Residential ground leases
Buying a home on leased land usually costs less upfront than buying the same home in fee simple, but buyers pay ground rent and face the lease’s end date. As the remaining term shrinks, lenders may hesitate to finance and resale value can fall. Many lenders require the lease to extend a set number of years beyond the loan term.
Pros and cons
For tenants: lower upfront cost and access to locations where land is not for sale; but rising ground rent, eventual reversion, and financing challenges.
For landowners: steady income while keeping the land; but less control during the term and reliance on the tenant’s upkeep.
Questions before buying
- How many years remain on the lease?
- How is ground rent adjusted, and when is the next adjustment?
- Can the lease be extended or the land purchased?
- What happens to the building at the end?
- Will lenders finance it?
Bottom line
A ground lease separates land ownership from building ownership for a long term, with the tenant paying ground rent and the land reverting at the end. Read the term, rent escalations, improvement ownership, and financing provisions carefully, and check for a recorded memorandum. Start with the parcel on the Platbookmapper map.
What is a ground lease FAQ
What happens when a ground lease ends?
The land and often the improvements revert to the landowner, unless the lease provides otherwise or is renewed.
Can you get a mortgage on a ground lease?
Often, if the lease allows it and has enough remaining term. Lenders set their own requirements.
Are ground leases recorded?
The lease or a memorandum of lease is often recorded, so it appears in title searches.
How long are ground leases?
Commonly 50 to 99 years, but terms vary.
Is a ground lease a good investment for a homebuyer?
It depends on price, rent escalations, and remaining term. Review the lease carefully before buying.