Learning about this ...looked at an apartment this week which has a land lease ...this makes the co-op slightly cheaper . Lease is until 2090. We will stay for only 15 years, have retirement plan in place. Any negatives to this transaction ? and - Maintenance is comparable to most other of this size. Not oddly higher or anything. Has anyone else chosen this route ?
We have a restricted land lease on our condo til 2070. I guess the only downside is we are only paying off the interest (interest-only loans) and not actually getting any principal paid down unless we take extra steps. And when it comes time to sell we have capped appreciation and will have to split any appreciation with the landowning institution. But still way cheaper than renting!
Say you stay for forty years; hard for your heirs to resell.
It may be cheaper as a function of being riskier. Banks will charge more if the property isn't owned in fee.