Leasehold condominiums are permitted under the provisions of in G.L.c. 183A. As originally drafted, the statute made no provisions for such condominiums, but was amended in 1985 to allow for the same but only in an area of a land assembly and redevelopment plan, or urban renewal plan
In 1992 the statute was rewritten regarding leasehold condominiums and they are now permitted generally and not limited to in their creation to those located in an area of a land assembly and redevelopment plan, or urban renewal plan. However, the new law specifically stated that it applied only to condominiums created after its effective date, namely April 16, 1993.
Here are three of the most common questions I see regarding leasehold condominiums:
How long must a leasehold condominium endure?
Answer: At least sixty (60) years. See Mass. Gen. Laws, Chapter 183A, Sec. 2.
Who must execute the master deed in the case of a leasehold condominium?
Answer: The lessee, but the lessor must consent thereto. See Mass. Gen. Laws, Chapter 183A, Sec. 8A.
What happens at the end of the leasehold term?
Answer: Upon termination of the lease the lessor may offer to sell the property to the unit owner association. The theory here is that the association then would either sell the property and divide the proceeds or, perhaps, declare a condominium on the property. If the association decides not to purchase, it may negotiate a renewal of the lease for a periods of at least another sixty (60) years, if the lessor is so inclined. See Mass. Gen. Laws, Chapter 183A, Sec. 8A(f).