About Land Lease

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 reassesment 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, homewoners 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 reassesed by the county tax assesor, you pay tax on both the land & house. Keep in mind the lease amount does not change until that properties reassesment date.

Q. Who determines land value and how is the lease amount set?
A. The land value is determined by a licensed appraiser six months prior to that properties reassesment date. The lease amount is then set at 7% of that appraised land value, and stays at that amount till the next reassesment date.

Q. Is there an association and or homeowners fee?
A. Yes, the Alisal homeowners recently formed an association. $20 per year with information on events and an Alisal web page. Homeowners get togethers two times a year.

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 and then wait till there is an opening available to be a member of either the golf and tennis clubs.

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 $325 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  for their guests use only.

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 7% of that properties appraised value.

Q. Has the assesment ever gone down?
No, California land, historically, has not lost value over the years, the expectation should be values would continue to increase over the next years.

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.