Ground Lease Definition

A ground lease is a type of lease that is on raw (undeveloped) land or a type of lease that covers the land but not any improvements (usually a net lease).

Ground leases may be subordinated or unsubordinated

Subordinated ground lease is when the lessor of the ground is junior to the rights of the holder of the first mortgage.

Unsubordinated ground lease is when the lessor of the ground is senior to the rights of the holder of the first mortgage.

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