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Land Lease in McCormick Ranch

I live in McCormick Ranch, Scottsdale AZ. It was one of the best places to own real estate in Scottsdale due to its lush green landscaping and ideal location to live in the heart of Scottsdale.

McCormick Ranch is situated between Paradise Valley (to the west) and Gainey Ranch (to the north) and Scottsdale Ranch (to the east) and only miles from Old Town Scottsdale, the Gainey Shops and Keirland shopping center, restaurants and boutiques. McCormick Ranch is also situated amongst several private and Scottsdale public golf courses inlcuding :

  • Palm at McCormick Ranch Golf Club – Public – (480) 948-0260 , 7505 E McCormick Pkwy Scottsdale, Arizona 85258 ,
  • North at Talking Stick Golf Club – Public – (480) 860-2221 , 9998 E Indian Bend Rd Scottsdale, Arizona 85256 , and
  • Marriott’s Camelback Golf Club & Resort – Resort – (480) 596-7050 , 7847 N Mockingbird Ln Scottsdale, 85253

McCormick Ranch, with an estimated population of 23,000 people, is one of the largest planned community developments in the country. Homes for sale in McCormick Ranch range from small condominiums that are listed for under $200K to larger single family homes with waterfront lot for more than $1MM

Just south of McCormick Ranch in the Scottsdale zip code 85250 sits a community called Briarwood:  Briarwood is a wonderful place to live, great homes, and ideal location in Scottsdale. However, much of this area, including Briarwood is on ‘leased-land’. What is leased land or ‘Leasehold ownership’ ?

A leasehold estate is an ownership of a temporary right to land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord.

Leasehold is a form of property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market. A leasehold thus differs from a freehold where the ownership of a property is purchased outright and thereafter held for an indeterminate length of time, and also differs from a tenancy where a property is let (rented) on a periodic basis such as weekly or monthly.

Briarwood and the Santo Tomas subdivisions are single-family residences with legal ownership rights that more closely resemble condominiums. There is a  monthly land lease fee in addition to a monthly HOA (home owners association) fee. Fees can range from $300/monthly to more than $500/monthly.

It is critical that you take this into account in your purchase price. If you are buying a home that is $200K and paying and additional $4,000/annually in land-lease fees, the actual cost is quite a bit more. Make sure you and your Scottsdale Realtor go over those costs before you make your offer.

If you have questions about real estate in McCormick Ranch or Briarwood, or would like to discuss the benefits, pros and cons of buying homes in Scottsdale on leased-land, please call me anytime.\

James Wexler ~ Associate Broker ~ Scottsdale Real Estate – 480-221-8080

Please review the best homes for sale in next to Briarwood in Santo Thomas:

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Data last updated 8/29/15 8:29 PM PDT.