One of the more interesting aspects in real estate is buying a lease hold interest in a property. A lease hold interest is basically defined as having the exclusive right to possession of a property for a certain period of time. This is often created buy the way of a written lease. A beach front condo in the Laguna Lido building in South Laguna is now offering a lease hold interest for sale for $799,000. The seller in this case is referred to as the lessees who has occupies the property until the year 2059 when it reverts back to the lessor. The seller pays for all homeowners association dues, lease, taxes and utilities on the condo. The best way to describe this is that it's basically a very long lease of an approximate 42 years. So if you broke down $800,000 over 42 years the monthly payment would be approximately $1,587.30. This does not include any taxes, lease, dues or utilities so that would need to be factored into the cost. This is ideal for someone that would like to enjoy the benefits of living in an ocean front condo for a fraction of the cost and is not concerned about losing the property after 40 years.
Lease hold interests rarely come on the market for sale in Laguna Beach so this is a rare opportunity. Also, anyone who buys a lease hold interest can also sell it so the condo could be used for a number of years and then sold to another buyer. The asset of the lease can also be traded or mortgaged which makes it a valuable commodity. Normally condos in the Laguna Lido building would sell in the $2 Million dollar range so $800,000 is a big difference in price. This type of real estate purchase is not for everyone. We recommend asking lots of questions and getting as much information as you can before making a purchase. This could be ideal for those looking to enjoy a beautiful ocean view condo even though it will end in the year 2059. Please call us at 949-355-1622 with questions regarding buying a lease hold or any other property in the city of Laguna Beach.