Home Buying in Methuen>Question Details

Argentina, Home Buyer in Wyandotte, MI

The propery description for 8 Ridgewood Lane Methuen, MA states that the land is leased and renewed every 3 years @ $3,140/year. What does this mean?

Asked by Argentina, Wyandotte, MI Thu Apr 12, 2012

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3
Kevin Vitali’s answer
You may purchase the building but the land is not transferred with the building, it is strictly a land lease. Much like a rental of an apartment you must renew the land lease regularly. Typically land leases will run for a much longer period than an apartment lease.

One issue you may run into, is the property will be unfinancable because of the land lease. It would strictly be a cash purchase.
0 votes Thank Flag Link Fri Apr 13, 2012
Argentina, this means that if you purchased the home you would not own the land, only the house and other personal property on the land. Another person owns the land and there is a fee to use the land. I have been in this home before and I took some photos. Contact me if you would like more information.

Thank you,

Chris
Web Reference: http://teamlefebvre.net
0 votes Thank Flag Link Thu Apr 12, 2012
It is presented that you may purchase the building and the right for that structure to be on the land for $3140 per year in rent. This is under a 3 year lease. Many times these leases are for 99 years so you do not run into an issue with the land owners asking you to move your structure. They have the right to the land and not renew your lease after 3 years. This situation is happening down in Dennis, MA right now.
0 votes Thank Flag Link Thu Apr 12, 2012
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