Deferred charges refer to nontangible costs that are anticipated to provide value over multiple years. These costs are amortized over the period they are expected to provide value, for accounting or tax purposes.
A ground lease is an agreement in which a tenant leases land for a long period, usually spanning several decades. The tenant can develop and use the land during the lease term, but at the end of the lease, ownership and any improvements revert to the landowner.
Ground rent is the regular payment made by a lessee to the lessor for the lease of land, usually on a long-term lease agreement, allowing the lessee to utilize the land for specified purposes while retaining ownership rights with the lessor.
A lease-own hybrid model is a commercial real estate lease arrangement in which a tenant leases space in a property and simultaneously gains an ownership stake in the entity owning the property. This model allows tenants to participate in annual profits and appreciate in the property’s value while committing to long-term, above-market rent payments.
A leasehold mortgage is a lien placed on a tenant’s interest in real estate, usually a long-term lease, to provide security for the repayment of a loan.
A long-term lease typically refers to a commercial lease agreement that spans five years or more or a residential lease agreement lasting over one year. Long-term leases offer stability and predictability for both landlords and tenants, coming with distinct advantages and potential drawbacks for each party.
