Lease Monetization
About one-third of our clients elect to only sell their lease and retain the underlying property. Some of the benefits of this include:
- In this structure, you agree to sell your lease and the associated rents for a certain period of time, i.e. 35 years. After 35 years passes and because you have not sold your property, all of the property rights revert back to you at this point. If there is still a renewable energy project on your property, then you will receive the rents from this point onward. Alternatively, if the project is no longer there, you are free to use your land for another purpose
- In a lease monetization transaction, we acquire your lease income and are granted an easement in exchange for an upfront payment. Because an easement is a real property interest that is recorded on title, there are potential tax benefits to you*. This easement entitles Renewable Land to collect rent from the renewable energy project for defined period of time.
- Pricing for a lease monetization is typically slightly lower than a fee simple deal. This is because you retain ownership of the underlying property in a lease monetization transaction
Reach out to us today if you are interested in a free, no obligation evaluation of the value of your lease!
* Renewable Land does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.