So you have been diligently looking for a lakefront home and find the perfect property. However there is an unusual mention in the listing that the land, and/or lake frontage is on leased land, and you have seen this before. Why are some lakefront properties on leased land? What does that mean? Having an experienced lakefront specialist is key in this scenario. Understanding how your property can be used and what your lake rights are will greatly affect the enjoyment of living lakeside.
What is leased land?
A land lease, also known as a ground lease, is an arrangement in which a landowner rents out the land to a tenant. A perfect example would be a mobile home park. Many people own the actual modular home but rent the property it sits on. This allows the homeowner to avoid property taxes, and in many cases gives them the use of other shared amenities within the development.
why is the land leased?
There are several key reason a lake may be on leased land. Many lakes are man made for the purposes of power generation. Most owners of major, developed lakes in the United States are public utilities. Utilities such as power companies or government agencies like the U.S. Army Corps of Engineers. When a public utility builds a lake because it needs water for industrial use, such as hydroelectric power, cooling of industrial power plants, etc., the public utility, within Federal Energy Regulatory Commission (FERC) agreements, retains possession of much of the land around the lake, including shoreline areas
What are my shoreline rights?
Shoreline rights can vary depending on the lease agreement. In most cases if your property abuts a lake that has a land lease there is a buffer zone that needs to be maintained. The ability to put a dock out or even have a direct path to the waters edge could be restricted by the lease owner. In addition, some land lease entities have separate association fees and can charge for docks, and boats, and general use of the water.
It is crucial to have an experienced lakefront specialist by your side. Because navigating the complexities of leased land and understanding your shoreline rights is not easy. They can help you comprehend the terms and conditions of the lease agreement. Confirming that you are fully aware of any restrictions or limitations on the use of the land and lakefront. With their expertise, you can make informed decisions about purchasing a lakefront property on leased land. They will ensure your enjoyment of living lakeside is not compromised. By partnering with a knowledgeable professional, you can gain peace of mind. Confidently embarking on the journey of owning a lakefront home.
Posted by Scott Freerksen “The Lake Guy”