Better Way to Buy a Home

How it Works

Start your home buying journey with a ground lease and more cash in your pocket.

Worried about the rising cost of homeownership? Here’s some good news: Groundly has created a Better Way to Buy a Home by separating the home from the land it sits on through a modern ground lease, reducing the upfront cost. On average, Groundly customers can save up to 30% on their down payment and 10% on their initial monthly payment. How you use the extra cash is up to you.

Traditional Mortgage

Traditional mortgages require homebuyers to take a loan out for the home and the land that it sits on.

Groundly

Groundly purchases the land underneath your home and leases it back to you at a low monthly rate, so that you only need a mortgage on the home itself.

A More Efficient Home Buying Experience

How You Save

Lower purchase price for the same home

Lower down payment

Lower monthly payments

Average Groundly Customer Savings

Up to

30%

on down payments

Up to

10%

on inital monthy payment

Reduce your down payment and monthly payments with a residential ground lease.

Frequently Asked Questions

Is a Groundly Lease right for me?

What is a Groundly Lease?

Ground leases historically have been common for religious institutions, government entities and universities, providing a less expensive alternative to traditional mortgages. With a Groundly Lease, while the home itself is owned by the homeowner, the land (lot) is owned by Groundly, who then leases it to the homeowner for a period of 99 years, reducing the required mortgage amount and monthly payments.

Does a Groundly Lease replace a mortgage?

Generally, no. A buyer would typically obtain a mortgage loan secured by the home and the buyer’s leasehold interest in the land. The mortgage amount would be lower with a Groundly Lease, leading to lower monthly costs.

What are the benefits to homebuyers?

Homebuyers benefit through lower down payments and lower monthly payments, which means they can typically purchase homes with a higher price than they would with a traditional mortgage approach. You can choose to prioritize a larger home, a bigger lot, more desirable neighborhood, etc. and you can sell your home at any time without restriction.

How is my ground rent payment determined?

Ground rent is set at the beginning of the lease and determined by applying a rate, like an interest rate, to the amount of proceeds paid by the ground lessor to purchase the land. Ground rent payments increase by 2% annually, with an inflation catchup adjustment once every five years based on the Consumer Price Index with an annual cap of 3.0% per year. After the adjustment, the rent continues to grow only 2% until the next catch up adjustment. The inflation catch up adjustment will never increase the annual rent by more than 7.1% in any adjustment year.

Who should consider a Groundly Lease approach to a residential home purchase?

Anyone who is interested in reducing their down payment and monthly costs relative to a traditional mortgage should consider a Groundly Lease.

Better Way to Buy a Home

Reduce your down payment and monthly payments with a Groundly Lease

  Traditional
Ownership
Groundly
Lease
Savings
Upfront Cost      
Purchase Price $500,000 $350,000 $150,000
Mortgage $400,000 $280,000 $120,000
Down Payment Amount (20%) $100,000 $70,000 $30,000
Monthly Cost      
Ground Rent1 $0 $438 ($438)
Property Tax $329 $329 $0
Mortgage (5% Rate)2 $2,168 $1,515 $651
Total Monthly Cost $2,479 $2,284 $213

1Initial ground rent equal to 3.5% of land price.

2Based on a 30-year fixed rate mortgage with a 5% interest rate.

A More Efficient Home Buying Experience

  • Increased buying power—the same home for less money or more home within your budget
  • Reduce down payment
  • Lower monthly payments
Questions

Contact Us

Our Office
1114 6th Avenue
New York, NY 10036
Phone Number
646 248 6490
Close

Mortgage Calculator

Monthly Cost
  Groundly
Purchase Price {{homeline.purchasePrice | currency:undefined:0}}
Mortgage (% of Purchase Price) {{traditional.mortgagePercent | number: 0}}%
Mortgage Amount {{homeline.mortgageAmount | currency:undefined:0}}
Interest Rate {{traditional.interestRate | number: 2}}%
Loan Term (Years) {{traditional.loanTerms}}
Mortgage P&I (Monthly Payment) {{homelineDataMortgagePayment | currency:undefined:0}}
Ground Rent (Monthly Payment) {{homeline.homelineYearOne | currency:undefined:0}}
Property Tax (Monthly Payment) {{(traditional.reAmount / 12) | currency:undefined:0}}
Insurance (Monthly Payment) {{(traditional.insurancePayment / 12) | currency:undefined:0}}
HOA Fees (Monthly Payment) {{(traditional.hoaFees / 12) | currency:undefined:0}}
Total Monthly Cost in Year One {{homeline.monthlyCost | currency:undefined:0}}
Minimum Monthly Ground Rent Payment in Year {{yearX}} {{homelineMinGoundRentYearX | currency:undefined: 0}}
Maximum Monthly Ground Rent Payment in Year {{yearX}} {{homelineMaxGoundRentYearX | currency:undefined: 0}}
Download Datasheets
Month Minimum
Total Monthly
Payment
Maximum
Total Monthly
Payment
Mortgage
Payment
Mortgage
Interest
Mortgage
Principal
Mortgage
Balance
Minimum
Ground
Rent
Maximum
Ground
Rent
Property
Tax
Insurance HOA
{{$index + 1}} {{datasheetData[$index].homeline.minMonthlyPayment | currency:undefined:0}} {{datasheetData[$index].homeline.maxMonthlyPayment | currency:undefined:0}} {{datasheetData[$index].homeline.mortgagePayment | currency:undefined:0}} {{datasheetData[$index].homeline.interest | currency:undefined:0}} {{datasheetData[$index].homeline.principal | currency:undefined:0}} {{datasheetData[$index].homeline.balance | currency:undefined:0}} {{datasheetData[$index].homeline.minGroundRent | currency:undefined:0}} {{datasheetData[$index].homeline.maxGroundRent | currency:undefined:0}} {{datasheetData[$index].traditional.reAmount | currency:undefined:0}} {{datasheetData[$index].traditional.insurancePayment | currency:undefined:0}} {{datasheetData[$index].traditional.hoaFees | currency:undefined:0}}