Ground lease
Explore how we can help businesses with their commercial lease requirements.
Contact our teamA ground lease offers a unique opportunity for both landlords and tenants, providing a long-term agreement where the tenant leases land from a property owner, often for extensive periods such as 50 to 99 years.
In these arrangements, the tenant typically has the right to develop the land, erect buildings, or run commercial operations, while the landlord retains ownership of the land itself. Ground leases are particularly popular in urban development and large-scale commercial projects, offering flexibility for tenants and steady income for landlords.
At Moore Barlow, we understand the complexities of ground leases and the importance of structuring them correctly to ensure a successful, long-term partnership. Our team offers expert legal guidance to help both landlords and tenants navigate this type of agreement with confidence.
What is a ground lease?
A ground lease is a long-term lease where a tenant leases a plot of land from the property owner, with the right to develop or use the land for commercial purposes. Unlike typical leases that include buildings or structures, a ground lease often involves undeveloped land, giving the tenant the freedom to build or modify the space as needed. At the end of the lease, ownership of the land, and typically any improvements made on it, reverts to the landlord.
This arrangement is common in commercial developments where tenants want control over the construction and use of the property, but without the large upfront costs of purchasing the land outright.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
How we help
Moore Barlow offers comprehensive legal support for ground leases, ensuring both parties understand their rights and obligations from the outset. We assist with drafting detailed lease agreements that clearly define the scope of development, rent review mechanisms, and the handling of any improvements made to the land. Our expertise ensures that both landlords and tenants are protected, and that the terms of the lease are fair and transparent.
We can also discuss key considerations such as the duration of the lease and options for renewal, permitted uses of the land and any restrictions on development and conditions around the transfer of ownership of any buildings or improvements at the end of the lease.
Our goal is to ensure that the lease terms are carefully structured, allowing tenants to maximise their investment in the land while safeguarding the long-term interests of the property owner.
Why are we a good choice?
With Moore Barlow, you benefit from our in-depth experience in commercial property law. Ground leases can be intricate, especially when it comes to balancing the long-term needs of both landlord and tenant. Our team provides strategic, clear advice to ensure that the lease is structured in a way that benefits all parties, whether you’re developing land or seeking a stable, long-term investment.
We pride ourselves on delivering practical solutions that reflect the unique requirements of ground lease agreements, ensuring that both development opportunities and future returns are well protected.
Who we can help
Our team works with a diverse range of clients, from property developers seeking land for commercial or industrial use to landowners looking to capitalise on the value of their property without selling it outright. We tailor our services to meet the specific needs of each client, whether you’re negotiating a ground lease for the first time or managing an extensive property portfolio.
Contact
If you’re considering entering into a ground lease or need advice on managing an existing one, Moore Barlow is here to help. Contact our experienced commercial property team today for expert legal guidance tailored to your needs. Let us ensure your ground lease agreement is structured for long-term success, providing both security and flexibility for your business. With Moore Barlow by your side, you can move forward with confidence.
Contact our commercial property team
Frequently asked questions
What is a ground lease agreement?
A ground lease agreement is a legal contract between a landlord (the landowner) and a tenant, where the tenant leases the land for a long period, typically ranging from 50 to 99 years. Under this agreement, the tenant has the right to develop, build, or use the land, but does not own the land itself.
The tenant pays rent to the landlord for the use of the land, and any buildings or improvements made by the tenant usually revert to the landlord at the end of the lease term, unless otherwise agreed. Ground leases are commonly used in commercial real estate developments.
Who owns the building in a ground lease?
In a ground lease, the tenant typically owns the building or any improvements they construct on the land during the lease term. However, at the end of the lease, ownership of both the land and the building generally reverts to the landlord, unless the lease agreement specifies otherwise. This means the landlord ultimately gains ownership of the building without having paid for its construction.
What happens when a ground lease expires?
When a ground lease expires, ownership of the land and any improvements, such as buildings or structures, typically reverts to the landlord, unless the lease agreement specifies a different arrangement. This means the tenant loses their rights to the property and no longer has any claim over the land or the structures they may have built during the lease term.
At expiration, the tenant may negotiate a lease renewal or extension, but this is not guaranteed. If no renewal is agreed, the landlord gains full control of both the land and any developments made on it, without paying for the improvements.
Meet our team of commercial property solicitors
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Julian Parkes
Partner | Commercial Property, Real Estate, Landed Estates and Farming
Callum Leary
Partner | Commercial Property, Real Estate, Real Estate Finance
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Nicola Donnelly
Associate | Real Estate, Plot Sales, Residential Property
Fiona Hampton
Chartered Legal Executive | Commercial Property, Land Development, Plot Sales
Helen Archibald
Consultant | Commercial Property, Real Estate, Land Development
Janice Taylor
Conveyancing Executive | Real Estate, Plot Sales, Residential Property
