Sustainable housing: A ground lease partnership model

Löhr, Dirk

doi:10.1016/j.landusepol.2016.10.037

Cited by 10 publications

(14 citation statements)

References 2 publications

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“…Ground leases are a policy instrument the purpose of which is to a time-limited division of the bundle of rights between a public landowner and the ground leaseholder, who becomes the owner of the facilities on the land for a defined time (Gerber, Nahrath, & Hartmann, 2017;Löhr, 2017). Ground leases are often used for retail, office, and industrial developments in the U.S. and many other countries (M. Trojanek, Anholcer, Banaitis, & Trojanek, 2018).…”

Section: Introductionmentioning

confidence: 99%

The effect of perpetual usufruct on single-family houses in Poznań

Trojanek¹,

Tanaś²,

Trojanek³

2019

Journal of International Studies

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The paper explores the influence of the perpetual usufruct (a form of owning the ground similar to a long-term lease in Poland) on house prices in Poznań. The research is based on a data set of 1074 geo-coded single-family houses transactions for the years 2010 to 2015. In this research, the hedonic method was used in Ordinary Least Squares (OLS), Weighted Least Squares (WLS) and Median Quantile Regression (Median QR) models. We found substantial evidence that single-family houses constructed on perpetual usufruct lots are discounted on average at 4.1%.

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Section: Introductionmentioning

confidence: 99%

The effect of perpetual usufruct on single-family houses in Poznań

Trojanek¹,

Tanaś²,

Trojanek³

2019

Journal of International Studies

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“…Given the unambiguous theoretical predictions regarding the effect of unexpired lease terms on values of real estate, the study tests the hypotheses below: The impact of ground rent on a property value particularly in an investment valuation model is contingent upon its proportion to the periodic rental income from the property. That said, insights from the Commercial Ground Rent Lease Model profess that a lessor in a typical ground lease arrangement shifts crucial risks on the lessee (Löhr, 2017). This is because the lessee bears certain operating leverage risks in relation to the investment yield and cash flow position.…”

Section: Impact Of Unexpired Lease Term and Ground Rentmentioning

confidence: 99%

The effect of ground rent and unexpired lease term on property values in Ghana

Awuah

Gyamfi-Yeboah

2019

IJHMA

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Purpose Although several factors influence property value determination depending on the market, relevant studies in sub-Saharan Africa (SSA) often fail to analyse the impact of factors, such as unexpired term of leasehold interest and ground rent, which are also germane to market transactions and value determination. This study aims to examine the effect of unexpired term of leasehold interests and ground rent on the valuation of residential properties in Ghana. Design/methodology/approach A questionnaire instrument was used to collect the views of a sample of professional real estate valuers on the relevance of these and other factors that affect value. In addition, the valuers were tasked to value a residential property located in Accra, Ghana. Ordinary least squares and quantile regression models were thereafter used to analyse the data to determine the effect of the subject variables on value. Findings The study finds a significant relationship between valuers’ views on the relevance of unexpired term of leasehold interest and the value placed on residential properties. Further, the respondents who viewed ground rent as an important factor in estimating values placed significantly lower values than those who viewed it as less important. Research limitations/implications The findings suggest that the respondents may have split opinion on the existing anecdotal evidence that market participants ignore the unexpired term of leasehold interest, an issue that should be settled in theory. The findings also highlight the diversity of opinion on some of the fundamental factors that affect value and the need to build consensus to prevent excessive variation in value estimates among valuers. Originality/value The study makes a significant contribution in terms of extending the existing literature by analysing the impact of unexpired term of leasehold interests and ground rent on residential property values based on empirical data, issue(s) which have often been ignored by existing studies. Findings from the study also provide insights into additional possible causes of valuation errors in Ghana and SSA, which are useful for policy formulation and practice.

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“…It has also generated fierce debates elsewhere (Tyvimaa et al, 2015;Ploeger and Bounjouh, 2017), such that many ground-rent adjustments end up in court (Mandell, 2002). Nevertheless, interest in public ground-lease models is undergoing a revival as a way of providing affordable housing that allows for a separation between the affordable price paid by the lessee and an enduring claim on full future land values by the public owner (Bourguignon, 2013;Löhr, 2017;Shamsuddin and Vale, 2017).…”

Section: Introductionmentioning

confidence: 99%

Land pricing upon the extension of leases in public leasehold systems

Altes

2019

JERER

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Purpose This paper aims to compare and review alternative ways to adjust public ground leases. Design/methodology/approach Based on principles derived from a review of scientific literature, alternatives for the extension of leases are discussed based on the case of Amsterdam. Findings Many alternatives lead public ground-lease systems to produce results that are the opposite of what they are intended to be (as inspired by Henry George): new improvements result in higher rent, but additional location values do not result in higher rent. One exception is the lease-adjustment-at-property-transaction alternative, which may nevertheless result in fewer transactions. Social implications Public leasehold systems are highly contested with regard to the extension of leases. Such systems are often aimed at capturing land-value gains. In practice, however, this tends to be more difficult than expected. Value capture by authorities, as intended by the system, results in counter-movements of lessees, who often gain public support to set lower leases. These political processes may even result in the termination of such public ground-lease systems. This paper reports on a search for possible solutions. Originality/value The comparison of various alternatives to ground-lease extension based on principles derived from literature is new, and it contributes insight into public ground-lease systems.

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Sustainable housing: A ground lease partnership model

Cited by 10 publications

References 2 publications

The effect of perpetual usufruct on single-family houses in Poznań

The effect of perpetual usufruct on single-family houses in Poznań

The effect of ground rent and unexpired lease term on property values in Ghana

Land pricing upon the extension of leases in public leasehold systems

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