In Chicago’s Orchard Park neighborhood, a specific type of real estate ownership exists where residents own the structure built on the land, but not the land itself. This arrangement, commonly employed for residential buildings like condominiums or townhouses, grants the homeowner a lease for the land beneath their property for a defined period, often extending for decades. For instance, a resident might own their condominium unit outright, but lease the ground beneath it from a separate entity that holds ownership of the entire property’s land.
This form of ownership presents distinct advantages and has a unique historical context within the development of Chicago’s urban landscape. It can offer a more affordable entry point into homeownership, especially in desirable neighborhoods like Orchard Park, as the initial purchase price is typically lower than purchasing both the structure and the land. Historically, this model allowed for denser housing development and efficient land utilization within the city. However, it also requires careful consideration of the lease terms, including duration, renewal options, and potential ground rent increases over time.
