These are questions I am frequently asked about the Alisal land lease.

PLEASE email or call me if you have a question I have not covered here.
 
The lease is WHY we bought here ! My husband & I liked having control of our money and no mortgage. Not owning the land gave us those funds to invest in other properties for investment growth.
These homes would sell for more than double if the land was included.

Q. What does owning a home mean here at the Alisal?
A.  Just that...you own the home and not the land. Paying for just the home frees up your money to invest in other ways. We find that liberating. The lease is a fabulous one. It was set up for the first reassessment at the 25th year, then the 40th year and then each 10 year interval thereafter. This a "lifestyle" property. If you enjoy views, nature, wildlife, privacy, entertaining and being part of a wonderful group of people, this could be the place for you.

Q. How long is the lease?
A. The original leases were written for 75 years.

Q. What happens at the end of the lease?
A. In 2007, homeowners were offered a lease addendum that will require the Alisal to elect, before the lease expires, to either extend the lease to the year 2098 or purchase the leasehold improvements upon the expiration of the lease term at 90% of the appraised value less depreciation. This gives us a value we did not have in our original leases. The majority of homeowners have signed this addendum.

Q. Can the lease be arbitrarily changed at any time?
A. No, each lease is a legally binding document and can not be changed without the consent of both parties.

Q. Do I pay tax on both the land & the house?
A. Yes, upon the purchase of an Alisal home, the property & house is reassessed by the county tax assessor, you pay tax on both the land & house. Keep in mind the lease amount does not change until that properties lease adjustmentment date.

Q. Who determines land value and how is the lease amount set?
A. The land value is determined by a licensed appraiser about six months prior to that properties lease adjustment date. The lease amount is then set at 6% of that appraised land value, and is fixed for the next 10 years.

Q. How is the lease paid?

A. You may pay the lease yearly or quarterly.

Q. Is there an association and or homeowners fee?
A. Yes, the Alisal homeowners recently formed an informal association, the AHA. Membership is $25 per year with information on meetings by the Board sent out to the AHA homeowners on a as needed basis. Homeowners get together twice a year to meet and once to party.

Q. Who maintains the roads and the property surrounding the leased land?
A. Alisal Properties Inc, the land owners.

Q. Is the lease payment tax deductable?
A. No.

Q. If I own a home on the Ranch, can I play golf and tennis as part of my ownership?
A. No, you must apply for and be approved by the membership committee.

Q. What are the fees to join the golf and tennis clubs?
A. The fee to join the tennis club is $750 (family) and $60 per month.
     The fee to join the golf club is $8000 and $350 per month.

Q. Is the golf course public?
A. No. The golf course is for the hotel guests, golf members, and their guests only.

Q. Can I have a horse on my property or board it at the ranch?
A. No, horses are only allowed at the guest ranch and are owned by the Alisal.

Q. How do homes outside the Alisal, but similar to Alisal homes, compare in price?
A.  Because you do not own the land, homes in the Alisal run about 1/2 the price of similar homes on fee simple land.

Q. Is the lease amount the same for all homes?
A. No. A licensed appraiser appraises each property and uses many factors to determine value, from lot size to usability and location. Each lease amount is calculated on 6% of that properties land value.

Q. Has the lease ever gone down?
  As we all have seen Values, overall, across the US have been hit hard by the recession. Starting in 2013 and over those following 8 years all 63 homes will be reassed. I believe we will see some of the leases reduced and many will stay close to the same. Depending on the year the lease comes up on a particular property, I would not be surprised to see some leases go down.

Q. Is it possible to buy the land under your home?
A. Not at this time, but you may sell the house and transfer the lease to the new buyer.

Any other questions....? please feel free to call me at (805) 245-8141.