Are leaseholds a bad deal?
Made an offer on an oceanfront condo in Florida (40% less than the current owner paid in 2004.) Just got the condo documents only to discover that this is a "leasehold" situation. In otherwords, you own the condo but not the land that the building sits on. You pay a land lease amount each month. There's 65 years remaining on a 99 year lease. It's kinda freakin' me out to know that, even though I won't be around in 65 years, the owner of the land could elect not to extend the lease and take all of the condos back with no compensation to me (or my estate.)
It just doesn't feel right to me. My biggest concern isnt' really, that it could be worthless in 65 years, it's knowing that, more than likely, I'll want to sell the condo in 10, 15, 20 years and there won't be buyers...because of the land lease.
I still have time to back out of this deal and am leaning towards doing so.