bkshopr_IHB
New member
<..
Your Land Goes back to the irvine Company
- Thread starter bkshopr_IHB
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NEW -> Contingent Buyer Assistance Program
nirvinerealtor_IHB
New member
<p>bk,</p>
<p>There are a few homes in Irvine that were built on lease land (base on what I see less than 50 resales so far). The lease is for 100 years at the cost of something like $980/year for the land. Some or all of them you have option of purchasing the land at market value and therefore, the value will not diminish. I do not see new homes built on lease land anymore.</p>
<p> </p>
<p>There are a few homes in Irvine that were built on lease land (base on what I see less than 50 resales so far). The lease is for 100 years at the cost of something like $980/year for the land. Some or all of them you have option of purchasing the land at market value and therefore, the value will not diminish. I do not see new homes built on lease land anymore.</p>
<p> </p>
EvaLSeraphim_IHB
New member
Check your title papers. If you bought a fee simple (except for gas & mineral rights, which TIC always excludes from the sale), then you own the land.
The reason for the 100 year mark is that the contract must have an end date. As a result, when the contract ends, that is to say that when the current owner (you) transfers title to the next person (whether it's family or not), the land lease owners can change the cost per year of the loan. The 100 year is also chosed because homeowners want to feel like homeowners and not condo owners. Additionally, they don't want their land lease fees to go up at some future time. Land owners get income, home buyers get security of prices. Mostly a win for the land owner, but the land leaser is motivated to keep the community a worthwhile investment.
Additionally, there may be some homeowner association restrictions similar to CC & Rs. In order for the land leaser to maintain the value of the community, it is in their best interest to keep things in check. For those of us that don't put obnoxious satellite tv dishes on the front of our house as an eyesore visible to the public, it is not a big deal. For those of us that might want to say change the color of roof, there may be a restriction. The same goes for putting solar panels on your roof - though there is clear law that says that no association can restrict installation of solar panels on the basis of community rules. Caveat emptor.
Additionally, there may be some homeowner association restrictions similar to CC & Rs. In order for the land leaser to maintain the value of the community, it is in their best interest to keep things in check. For those of us that don't put obnoxious satellite tv dishes on the front of our house as an eyesore visible to the public, it is not a big deal. For those of us that might want to say change the color of roof, there may be a restriction. The same goes for putting solar panels on your roof - though there is clear law that says that no association can restrict installation of solar panels on the basis of community rules. Caveat emptor.