Closings glossary
Land lease
A building whose land is leased rather than owned. The lease term and rent reset schedule sit in the offering plan and shape much of what the apartments are worth.
What is a land lease co-op?
Quick Answer
The full definition
A building whose land is leased rather than owned. The lease term and rent reset schedule sit in the offering plan and shape much of what the apartments are worth.
Also called: Ground lease.
Where does land lease come up in a New York City closing?
An Upper East Side land lease co-op faces a 2029 rent reset, and lenders shorten loan terms as the ground lease runs down toward expiration.
What else should you read before closing?
In the glossary
- Proprietary leaseThe occupancy lease a co-op corporation grants a shareholder for a specific unit. It is assigned at closing together with the stock certificate for...
- Offering planThe sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sp...
- Maintenance (co-op)The monthly charge a co-op levies on each shareholder, covering building operations plus that shareholder's share of real estate taxes and the unde...
- Fee simpleOwnership of land held indefinitely and freely transferable, subject only to recorded encumbrances and to government powers such as taxation, zonin...
- Assessment (co-op or condo)A charge levied by a co-op or condominium board beyond ordinary maintenance or common charges, typically to pay for a capital project. It is disclo...
Building types
- Land-lease co-opA cooperative that owns its building but leases the ground beneath it from a separate landowner, on a lease with a reset schedule and an expiry date.
- Standard co-opThe ordinary New York City cooperative: you buy shares in a corporation and receive a proprietary lease to occupy a specific apartment.
- Mitchell-Lama co-opA limited-equity cooperative in the State and City Mitchell-Lama program, sold from a waiting list at a formula price rather than on the open market.
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