Buying leasehold property on Maui
By Mihaela Stoops, REALTOR - Broker, Your Maui Real Estate Professional
(Aloha Realty Group)
For those who have not heard of this concept ( after all, it is used only in Hawaii and Utah, to the best of my knowledge), leasehold is a type of ownership. Most typically, when one owns a condo, for instance, they own the condo itself ( that is the space between the walls) and also a share of the common elements (pool, roof, hallways and LAND). This is called fee simple ownership. In the case of a leasehold property, one does not own a share of that land that the condo sits on. Thus, one has to " rent" that land from whoever owns it and pay a lease rent. This lease agreement is valid for so many years and the rent is renegotiated every so many years. For example, the lease rent for a 2bd unit at Papakea is currently $120.00/month and it will be renegotiated in 2012. The lease rent ...