THE MEXICAN LAND LEASE
It is all too frequent that my clients ask whether they could obtain a 99 year land lease. Well, the thing is that any Mexican land lease over 10 years is beyond legal boundaries- it is not legal and it never was. This goes without saying that the 10+10+10 also falls under this category.
There are a lot of cases where people have entered into the “informal” 10+10+10 agreement. Sure it sounds like a good deal but the fact is that if your Mexican landlord, even after your first 10 years, decided to just terminate the agreement- in a whim or out of thin air-HE CAN. The fact that this system is not within court boundaries means that no legal power and no Allan Shore can swoop in and save the day. The Mexican landlord can simply opt to not recognize the next 10 years of the so-called deal.
There is one good alternative for those that want to lease land. I recommend using a time period of 9 years and 11 months. This is perfectly legal in both the Mexican court systems and with the landowner. At the end of the first contract, simply ask the landlord to renew for another 9 years and 11 months.
This Lease Land arrangement is BEST SUITED if:
1) You prefer to minimise the investment in your second home to get a much reduced total purchase amount instead of using a Bank Trust for example.
2) The owner actually agrees to give a 9 years and 11 months scheme
One last piece of advice- just remember to be certain that whatever investment you would be willing to pay for whatever edifice is on the lease land is an investment that you can average over the span of 10 years and are willing to desert at the conclusion of the first time period. This won’t always necessarily be, but when you look at the increasingly skyrocketing property prices in this area, it very well might be- even more so with those really large parcels.