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Buying property as a Land Lease means that you are only buying the “improvements” or the constructions of the land but you still pay a monthly fee for use of the land for periods of up to 10 years. Mexican law indicates that leases lasting an excess of 10 years are illegal.

Leasing Land In Mexico
Leasing Land In Mexico

Leases lasting 10+10+10 years are also not valid and will not hold up in court. If you are considering buying into a land lease keep in mind that at the end of the lease term, the land owner has every right not to renew.

Owning a home as a land lease can be a good option when you can’t afford or don’t want to make the big investment in a Bank Trust, a smart way of doing it is by, of course, as always doing your research, talking to your would-be neighbors and the neighbors association if there is one is a good way to start, getting a copy of the actual lease agreement so you can review it, there are a lot of things you can do to make sure your land lease investment is a safe one. Also, you can talk to the owner or your realtor and ask about the duration of the lease.

Lease Land Fees
If you have decided that the Land Lease option is what you want you can expect the rent to start from $150.00 to $600.00 a month, depending on the area. If you stay for the remainder of your lease and negotiate another lease term you will usually be required to pay a “cost of living adjustment” when your first lease term expires. If you decide to sell the structure you will have to pay the land owner a 10% fee and the buyer will most likely have an increase in the rent as well which is usually a 10% increase.