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Leasehold ownership occurs when a landowner enters into a ground lease with an individual or company. The buyer of leasehold property becomes a lessee rather than a fee-simple landowner. The lessee can develop the land and maintain the right to use for a period of time that is predetermined in the ground lease, usually anywhere from 50 to 99 years. During the lease term, the lessee is responsible for rental payments, property taxes, and insurance premiums. When the ground lease expires, the land reverts back to the landowner in a process called reversion. Any improvements that have been made to the land generally revert back to the lessor as well.

For more information on ground leases, head on over to the "smarts" tab at Real-ativity, the site for intelligent real estate.

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