Ground Rent Arrangement

Filed Under:
Dictionary Says

Definition of 'Ground Rent Arrangement'


A situation in which someone owns a structure but not the land the structure is located on. Because she does not own the land, she has to pay rent on it. It is common for hotels and office buildings to be subject to ground rent arrangements; sometimes houses are, too. Ground rent arrangements are more common in some states than others.

Investopedia Says

Investopedia explains 'Ground Rent Arrangement'


For individuals, purchasing a home on leased land can be a more affordable option than purchasing both a home and the land it sits on. Also, the Internal Revenue Service allows ground rent payments to be deducted as mortgage interest under certain conditions. However, a ground rent arrangement can be a less stable form of home ownership because the homeowner has little control over what happens to the land.
comments powered by Disqus
Hot Definitions
  1. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  2. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
Trading Center