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Legal Terms - building lease
A leasing agreement in which the tenant commits to constructing specific buildings on the property. Occasionally, the commencement of the lease is contingent upon the completion of the construction of the buildings. Upon the expiration of the lease, the buildings often revert to the ownership of the landlord. In the past, it was customary for residential properties to be constructed under a long-term building lease, typically lasting 99 years. In this arrangement, the landlord would rent the land to a builder at a rate that did not take into account the value of the buildings (known as ground rent), and the builder would then sell the lease to a tenant. With this type of lease, the tenant has the potential to gain a legal entitlement to buy the ownership of the property without any restrictions under the Leasehold Reform Act 1967.
A leasing agreement in which the tenant commits to constructing specific buildings on the property. Occasionally, the commencement of the lease is contingent upon the completion of the construction of the buildings. Upon the expiration of the lease, the buildings often revert to the ownership of the landlord. In the past, it was customary for residential properties to be constructed under a long-term building lease, typically lasting 99 years. In this arrangement, the landlord would rent the land to a builder at a rate that did not take into account the value of the buildings (known as ground rent), and the builder would then sell the lease to a tenant. With this type of lease, the tenant has the potential to gain a legal entitlement to buy the ownership of the property without any restrictions under the Leasehold Reform Act 1967.
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