The
Mexican Land Lease
Can
I get a 99 year land lease?
A
land lease for more than 10 years is not legal and never has
been. Nor the 10 + 10 + 10 year arrangement, either. If you
enter into a 10 + 10 + 10 agreement with a Mexican land owner
and at the end of the first 10 years the land owner decides
he does not want to recognize that second ten year lease you
thought you had, he does not have to do so. You have
no recourse, because you entered into that agreement which
was designed to circumvent Mexican Law, thereby giving you
no legal status to use the Mexican Court System.
If
you lease land, the lease should be
9 years and 11 months to stay within the lease land laws.
It is possible and perfectly legal for the Mexican land owner
to give you a new 9 year 11 month lease at the end of
your first 9 year 11 months and so on.
When should I get a land
lease?
It's
been suggested a Lease Land arrangement is acceptable if:
Just be sure the total investment you
are willing to pay for the structure on lease land is an amount
you can average over a 10 year period and be willing to “walk
away” from at the end of your first lease period of 9 years
11 months. That may not be the case, but know it could be
the case given the property values rising in this area at
such a rapid rate, especially large parcels.
Lease Land Fees
How much are land leases?
Land lease rents run from about $50.00
to as much as $600.00 per month. Most leases have a “cost
of living adjustment” at the end of your lease for the next
lease term. Often there’s a 10% fee when you sell the structures
that pass to the new land owner and your buyer will probably
have a nominal increase in the rent as well. Usually a 10%
increase.
