What is the Ground Lease?
Ground Lease Basics
Ground leases connect the owners of the land to the owners of the house
Homeowners sign a 99-year ground lease with VSCLT
Ground leases are inheritable, your home can be passed down to your heir, regardless of income, as long as they use the property as their primary home
VSCLT charges a $100 Annual Ground Lease Fee at the start of each year
Ground leases include the “Resale formula”
They outline the future “Purchase Price” by calculating how the home will appreciate in value over time
The resale formula ensures permanent affordability for any subsequent homebuyers
Ground leases can be complex!
All homeowners receive extensive one on one attention and education, including a session with an attorney, on CLTs and the ground lease before they close on their mortgage
Ground Lease Rules and Provisions
Ground leases are legally binding agreements with enforceable rules and provisions.
***Please Note*** - This is NOT a full list of rules included in the Ground Lease, but rather a helpful overview. Please refer to the Ground Lease for a full list.
These rules include:
Owner occupancy
The homeowner must use the home as their primary residence.
No renting
The homeowner is not allowed to sublease, rent, or sell the property without prior written approval from VSCLT. This includes short-term rentals (Airbnb, etc.).
Prior approval for liens
VSCLT (and your lender) must approve any additional liens against the property (e.g. loans, mortgages, mechanic’s liens).
Making payments
The homeowner is required to make all necessary payments for the home, including but not limited to: mortgage, insurance, property taxes, utilities, and homeowners association fees.
Maintaining Homeowner’s Insurance (see VSCLT Homeowner’s Manual for more details)