Leasing land - long term

[bhowle]

Our land backs up to a 400 acre parcel that's in a trust.

Anyone have any experience in leasing land on a long term basis. We're thinking about 5 acres for 99 years or so. We are assuming the land can't be sold and there's no access for the owners unless they want to spend megabucks on roads and bridges.

Thanks in advance for your replies.

-bob

[Alice In TX/MO]

I manage a trust, and I can tell you that it makes a HUGE difference how the trust documents are written. I can sell any of the property if I desire. Not that I would, but I do have that authority.

[Shadow]

Have the people in charge of the trust indicated that they would be interested in a long term lease. I can not think of any way I would tie up land in a lease for 99 years. I just can not see into the future that far.
We have friends that want some land we own but they do not want to purchase it for 4 years and wanted to know if we would sell it to them then. We thought it over and agreed to give them a free option that they would have the right of first refusial if in the mean time we decided to sale it. But the price would be determined at that future date.
Land has cost, taxes insurance the amount of interest we would get if the money we have invested in it was just setting in a savings account it cost us over $4,000 a year for us just tocall it ours. In four years we will have invested $16,000 more in it and they do not understand why we would raise the price that much.
Now if you wanted to lease that land from us for the next 99 years The cost would be aprox $80 dollars a acre per year, which would increase every year as our cost would, plus what we would want as our profit, which would increase each year. See it gets complicated and more trouble than its worth.

[rambler]

I can't see why they would want to do that. It would tie up the property, unless there is an escape clause, where they can tos you off in a year's notice or so.

What is the purpose of the leasing the land? I surely would not put a building or anything permanent beyond a fence on it. The property taxes, insurance, financing, and such get kinda strange. In a business district this is done all the time, but out in the country with different zoning, you will fall through the cracks of what is 'normal'.

As well, what happens at the end of the lease, you just have to walk away from the building?

Just want a pasture or garden, sure it's a great idea if you can talk the owners into it!

--->Paul

[fantasymaker]

Why would they break 5 acres out of the 400?
Do you mean the people that own the 400 acres cant reach it?all or justthe 5 you want? or that you wouldnt want them on the 5acres you want to lease

[hoofinitnorth]

Is it just for discussion's sake or is there some other reason you think the land can't be sold?