Every sponsor asks it, usually in the first meeting: "so you get my building in 99 years?" Yes — and here is the honest math on what that is worth, why lenders do not care, and why it is the reason the capital is cheap.
At expiration, improvements revert to the landowner — in our form, without payment, which is the market standard that keeps the rent low. Everything before that moment belongs to the leasehold: operate, refinance, sell the leasehold, renovate, rebuild. A well-drafted lease also deals with the last decades sensibly — maintenance standards so nobody milks a dying asset, and the practical reality that most 99-year leases are renegotiated, extended, or recapitalized long before year 50, because both sides usually make more money restarting the clock than running it out.
For most of the term, no. A leasehold with 70+ years remaining trades and finances like ownership. Value pressure appears only in the final decades, which is when extensions get negotiated.
Almost always, commercially: a fresh term is usually worth more to both sides than a countdown. Extensions are negotiated, not automatic, and that is true across the industry.
Some deals do. Term length is a pricing conversation: the longer the term, the closer our position is to selling the land outright, and the rent reflects it.
Send the property and we will show you what the land is worth as 99 years of contracted rent, with the reversion priced honestly at what it is: almost nothing.
Email us the property