Whiteboard Topics: Understanding Leased Lots for Lake Homes

Did you know that many lake homes are built on leased lots? In this video, we demystify what misconceptions you may have in regards to leased lake lots.

  1. Shoreline Ownership. Oftentimes, lakes are owned by public or private utility companies, the Corp. of Engineers, the Tennessee Valley Authority, etc. Because of this, lots on these lakes are leased.
  2. Lease Duration. Leased lots typically have long terms. It’s not uncommon to see durations range anywhere from 25 to 99 years. Because most homeowners don’t own their lake homes for more than 20 years, these long-term lease durations are factors that lake home buyers must consider when purchasing or building a home on a leased lot.
  3. Mortgage Impact. Getting a mortgage on a leased lot is not unusual and happens quite often with lake homes. But one of the concerns that potential lake homeowners could encounter is how the mortgage term could impact the lease term duration. For instance, a lender may not approve a 30-year mortgage for a lake home that is on a 25-year lease.

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