A lease of land (often before any building has been erected on the land), usually for a very long term. Any improvements usually revert to the ground lease landlord on termination of the lease.
Lenders often lend to ground lease tenants on the security of their leasehold interests. Complications ensue if the tenant files bankruptcy and rejects the lease, thus exposing the lender to loss of its collateral unless it has a Subordination, Nondisturbance and Attornment Agreement (“SNDA”) with, or some other enforceable assurance from, the ground lease landlord enabling the lender or its designee to continue in possession notwithstanding the rejection. Further complications may ensue if the ground lease landlord files bankruptcy and attempts to reject its obligations under the SNDA.